I'm glad he's back after following Mark Stewart to Goodyear.

 

Interesting timeline of events for Laranjo. Definitely suggests that a good portion of people were disenfrachised by CT.

The conspiracy theorist in me wonders if this was a preemptive way of saving face with shareholders, and that Q3 results are going to be rough. Ostermann agrees to fall on the sword with a solid exit package. Stocks then don't take as big a hit because they "righted the ship"

 

If that was going to be the reason, this personnel change ahead of Q3 was premature. Q4 isn't going to be pretty either even with the Cherokee and other products hitting the streets. Doug hadn't even been in place long, CT hit the "fire CFO button" just this time last year.

 

Stellantis executives at a training camp two years ago

Stellantis executives now

 

Hey if it weeds out the bad ones then keep jerking the chairs. Maybe someone good will get appointed.

 

It had the world scope, to a degree. Simca was pretty successful and profitable in Europe. They had their own divisions (purchased) in Australia and South Africa, and a cooperative in New Zealand, and a good business throughout South America with a combo of owned and partnerships. Rootes was there too and Barreiros and their Rotterdam operations (if they lasted that long, I'm not sure) and a Sweden factory. But Highland Park was in charge then, and the US came first. Would have been funny for Chrysler to wind down everything but profitable Simca! (Funny isn't the right word, I guess.)

 

Stellantis might have "global scope," but it is proving UNABLE to run its various regions competently.

Another feature Chrysler didn't have was an eminence gris sitting on the sidelines, in the form of John Elkann, ready to pull the plug on the whole thing the minute he thinks his interests are not getting the attention he feels are deserved. Kirk Kerkorian was a boy scout compared to John Elkann.

 

They kinda did. In the form of the US government. Had Lee not turned it around, Reagan would've pulled the plug if Lee hadn't succeeded. We will never know. Besides, Elkann's NA arm is still the strongest of their company, and once again the former remnants of Chrysler finds itself in troubled water, not by anything other then management incompetence. 1950, 1957, 1961, 1974, 1979, 1989, 2007, and now. Eight lives used up.

 

Wasn't there a bunch of things that Chrysler had to do to get the US loan guarantees?

 

To get US loan guarantees in 1979, Chrysler had to present a feasible, three-year operating and financial plan to the Chrysler Loan Guarantee Board, implement extensive cost-cutting and concessions from management and unions, provide collateral on its assets, secure substantial non-federally guaranteed financial assistance, and offer warrants for stock to the government, which the Board would administer to protect the US taxpayers' interests. The Chrysler Corporation Loan Guarantee Act of 1979 also established the Board to ensure loan repayment, proper use of funds, and provide ongoing oversight and reporting to Congress.

Key Provisions for Chrysler

• Operating and Financial Plan:
  Chrysler needed to submit and adhere to a detailed, rolling four-year operating and financial plan, which included cost-cutting measures, asset sales, and efforts to become more efficient and introduce new products.
  
  
• Financial Commitments:
  The company had to secure significant non-federally guaranteed financial support, such as $2 billion in cost savings and concessions from its labor unions, and raise additional capital through equity sales or subordinated debt.
  
  
• Collateral and Warrants:
  Chrysler was required to provide collateral in the form of liens on many company assets to protect the federal government in case of default. The company also had to issue stock warrants to the government, giving it the right to purchase Chrysler stock.

 

Wasn't there a bunch of things that Chrysler had to do to get the US loan guarantees?

To get US loan guarantees in 1979, Chrysler had to present a feasible, three-year operating and financial plan to the Chrysler Loan Guarantee Board, implement extensive cost-cutting and concessions from management and unions, provide collateral on its assets, secure substantial non-federally guaranteed financial assistance, and offer warrants for stock to the government, which the Board would administer to protect the US taxpayers' interests. The Chrysler Corporation Loan Guarantee Act of 1979 also established the Board to ensure loan repayment, proper use of funds, and provide ongoing oversight and reporting to Congress.

Key Provisions for Chrysler

• Operating and Financial Plan:
  Chrysler needed to submit and adhere to a detailed, rolling four-year operating and financial plan, which included cost-cutting measures, asset sales, and efforts to become more efficient and introduce new products.
  
  
• Financial Commitments:
  The company had to secure significant non-federally guaranteed financial support, such as $2 billion in cost savings and concessions from its labor unions, and raise additional capital through equity sales or subordinated debt.
  
  
• Collateral and Warrants:
  Chrysler was required to provide collateral in the form of liens on many company assets to protect the federal government in case of default. The company also had to issue stock warrants to the government, giving it the right to purchase Chrysler stock.

Yes. All stipulated UPFRONT, and perfectly reasonable to ask from someone getting a loan guarantee.

This is not what Elkann does, though: he loves to play intrigue, plot takeovers, get rid of people he doesn't like, shut down development programs he doesn't like, etc.

 

Elkann wasn't much involved during Carlos' reign.