My Interview With Chrysler's CEO

Our problem is not only saving the auto industry, but saving our economy as a whole. This trillion dollar bailout plan is like putting a bandaid on a artery burst. Bank failures in the last 28 years were do to job loses. How many jobs a year are moved offshore per year? How much taxes do we lose? Plenty! Our largest temporary job company employs 2 million workers! They have no job security, pay raises,vacations,medical insurance,retirement etc! Is this our future, as the number of these companies keep rising! The number of foreign workers in this country keep rising. Were told that they do work we dont want to do. The reality is that we cannot live on that pay scale, unless we live in communes! Fifty percent of the S&P corporations stock tanked to JUNK STATUS! This will lead to a decline in the number of publicly traded companies and an increase of mega large corporations. Megalarge corporations will go private by buying all their stock back. Wage increases have been flat since 1980! State college tuition doubles every four years! The federal minimum wagw still has NOT doubled since 1980! Are we going to continue on this path of economic decline????????????????????????????

I have worked for Chrysler 36 yrs. Durning this period I have experienced ups and downs of the auto business. I went through the 70's when we had a oil crises. During that time the Japan had cars that would give higher gas mileage. The only reason they sold cars was of the gas mileage not quality, not looks, not safety, only gas. 2008 we stil have a situation where gas is what drove people to driving fuel effiencent cars. The auto companies are very competative with the Japan cars. Trucks are not. We keep hearing how bad we were managing the companies when the only thing that saved the Japanse is the one car that gets good has mileage. The auto industry has been going to a more effienct auto and has plans to build the electric car, jeep, and mini van. Chrylser would not be in this position if it was not for the credit not being avaialble to the consumer. I don't like to beg for money, but when our govt. has failed all of us, by not regulating the fininacial inst. and the auto companies have no way of getting any money from the banks, of which are controlled by the govt., we need to money to surive this mess. We are only have way done with the fininacial crises, when you consider that there are still the loans made to individuals for low interest loans for comercial and private that will come due in a 5yr. plan., This crises will continue through 2009, which will make car loans hard to get. My answer is give us the money, but expect more need if the credit crises not get corrected by the govt.

Alexis, I am absolutely livid with everyone going out of their way to save the auto industry. The CEO's of these corporations did not wake up one morning and say oops we are in trouble, absolutely not, this has been ongoing for years. The politicians and CEO's have got to quit treating the American people as though we are stupid. If we save the Auto industry, then why not save the retail industry. How come no one saved the steel industry. The failure of the auto industry rests with the CEO's and the UAW both. Let them deal with it. Also too lets consider this. Will toyota, nissan, honda really let these companies go under, I do not think so, I think they will look it as an opportunity to buy these companies at a great price. Oh someone better tell the UAW that Japanese Auto makers do not allow Unions in their plants. If I was a UAW worker, I would look at it this way, making $20 an hour is better than making none. thanks for listening Craig

Alexis, You said during an interview Monday morning that you didn't understand why Nardelli and Mulally weren't receiving the same kind of negative attention as WAgoner, even though their companies are "not doing well" either. Mulally has only been with Ford for 2 years/2 months, and in that time, he has made HUGE changes! He came up with a simple, yet very effective plan that has allowed us to make huge gains in many areas: 1) We secured funding several years ago to pay for our restructuring - that's why we're not asking for money (obviously, you don't know that....) 2) We made a PROFIT in the 1st quarter 2008 3) The only reason our sales have slumped is because the banking industry has not yet started lending the hundreds of billions of dollars they were given (WITHOUT be questioned by Congress). In case you already forgot, that's why the TARP bill was passed in the first place 4) Ford quality is now EQUAL WITH HONDA AND TOYOTA (both initial quality and "3 years in service") 5) Ford has drastically cut it's salaried & hourly workforce to match demand 6) Mulally cut 35% of the executive ranks I could go on and on about the changes he has made, that have made us a stronger company! You have a responsibility to report the facts, however, not many people in your industry take that responsibility very seriously. When you state a lie, people believe you, and don't usually bother to do any thinking on their own. So by making uneducated statements, you are harming the companies on which you report.

The interest rate on this "loan" should be tied to quality of cars the US Manufacturers put out after they get the loan. Let's give them 24 months to use the money. If they truly build a better car then the foreign auto makers, then Americans will buy it. A better car is one with great mileage/gallon, infrequent repairs, low repair costs, high safety standards and reasonably priced. In fact I'd be willing to pay a little more then a foreign car for an equivalent American car. If the big-3 continue to make uncompetative cars, lets raise the interest rate on the loan after 24 months, and put them out of business. If the new cars start to really compete, lets lower the interest rate moving forwards so they can put monies into R&D and continue the improvements. Perhaps these CEO's should rotate through Honda and Toyota so they can experience what it takes to build a decent car for a decent price.

I worked for Nardelli at Home depot and if anyone in the WORLD can DESTROY a company he is the MAN.After cutting benefits , cutting staff, cutting pay, reducing bonuses to mid and lower management and completely DESTROYING the whole basis of the HOME DEPOT corp. which was customer service. He was finally fired by the board of directors.....Gee I hope Chrysler's investor's get smart a little faster than Home Depot's did. Then maybe they might have a chance...

I hear that Ford is not taking any money but all the news media includes Ford in the bailout plan. Why?

After listening to 2 days of hearings and watching the interviews here, it all sickens me. I see two real agendas here: 1. Republicans want to bust the Unions if they can 2. The Dem's are in bed with the UAW and will do what they can to give in to the money What I don't here is how will this effect "us", the common public. Alexis, please get someone who is not biased and let us know how this will effect the rest of us in the Country. If all these people get laid off, what will happen to the Dow? If I don't work in the auto industry, will this effect my family either way? If we don't give them the money or if we do... how will this effect us. Thanks

I am frustrated the media is NOT reporting the full scope of the auto loan/bailout value. In testimony last week it was crystal clear the real number the auto makers are looking for is NOT $25B or $34B its closer to $60B. There are several request with various governmental agencies, some rejected and some pending. Those rejected are tied neatly into their current plan and if the funds do not become available they will be back at the table in 6-9 months. Why aren’t you reporting the total request in front of the government? What we see on TV is not news, its a circus concocted by the liberals to appease the American public. The fact is; the automakers will get their loan with strings attached but the American public will never really know the total bailout request due to extremely poor reporting by the media. Eric Hawaii

All the auto makers over seas R & D is paid for by there Goverments,along with other supporting programs they offer there auto makers give them clear price advantage. The big 3 compention is the goverments of japan and korea. The big 3 been towing the rope alone for many years. If they go under. Jap veh cost will go up 30%. They will be priced just like they are in japan. Pre package bankrupt is foolish option. No wants to buy veh with replacement parts if veh were to get in fender bender be in question.

Hi Alexis, I saw you on Fox News with Bill Hemmer the other day. I would like to see Bill on Fox Business more with you. He seems like he would have an interesting perspective on many or the topics you cover. http://nymag.com/daily/intel/2008/04/bill_hemmer_drinks_stella_arto.html http://www.youtube.com/watch?v=dX5Z9vpZ_KY

I think the question each of us taxpayers have to ask ourself is if we each had $100,000 free cash in our pockets, how many of us would want to spend all, or substantially all of it in bailouts for a) the three automakers, b)Citicorp and Bear Stearns, c) Fannie Mae and Freddie Mac, and d) AIG. If the answer is "no, I do not want to part with my $100,000 for these purposes", then the next question is do you want to borrow that much money from the future well being of your children to be used for these purposes? If the answer is again "no", then we should not be bailing out these companies. We've been down this path before with Chrysler, with the 1979 bailout. They became more competitive for a few years, then went back to their old ways. Common sense tells us that if we repeat the same experiment over and over again, we should not expect to get a different result.

Alexis, I had to roll my eyes after reading your article earlier this morning, for someone that is supposed to be reporting on a professional level I feel you should do some serious soul searching. You see, your comments I can hardly wait for my interview with Chryslers speaks volumes to your inability to research and write an unbiased article that is not based on your personal feelings. Let's not forget that the media is not running the country, and please try to normalize the importance of your job! It is in know way as important as you lead everyone to believe.

Honestly, sometimes I wonder how America can be the bastion of the democratic, free and capitalism that we all aspire to be, (or should be aspiring). With TARP and now the automakers' bailouts, and with the government taking equity stakes in everything, with free warrants ala Warren Buffet, its now almost a socialist state. And to think you once threatened to wage wars against those who dared to presume that because they were government, they could do anything. I happen to honestly believe, that if the banks and the autos were left to fail, the market would have crashed, corrected, and resumed trading, staging a recovery in investment and faith and confidence much FASTER than if the investment community was mollycoddled into believing that all this intervention by governments worldwide are actually helping. At any rate, you do a great job, keep it up. And my posts aren't meant to be inflamatory, just curiosity.

It is extremely frustrating watching the "Big Three" alleged CEO's justify a dysfunctional process and incompetent leadership with a blizzard of barely germane data points and dollar figures. Well done Alexis holding Mr. Nardelli's feet to the fire...excellent questions all. My greatest take away is that it is difficult to believe that these gentlemen (UAW head included)are best the "Boards" can provide to run these companies. Perhaps, Board of Directors reform would be a next step to remedy these reoccurring series of national crisis within our economy. As a resident of Nashville, TN, we are very familiar with well managed auto manufactures...Nissan and Saturn when it was an autonomous organization. I our opinion, the only remaining solution for the Detroit problem would be a complete reorganization (which excludes this current "bailout" circus) and restructure to a Kaizen type design which the successful international car maker use. It is the only viable solution. Once again, excellent and timely interview! Well done!

So they want the government to bail them out, do they? Don’t they know the government produces squat? In order for the government to give them money it must be taken from those who actually are productive and produce something viable to tax. So why are politicians going to decide that one job is more important than my job? Campaign donations may weigh heavy in that decision. I’d like to see the Constitutionality of bailouts brought into the discussion. That their oath of office, to defend the Constitution, seems to be all but forgotten. Perhaps they believe that some are created more equal than others. Political reasons for manipulating the economy, I can’t find it anywhere in the Constitution of the United States of America. Mike Frick Yorkville, IL

I think a prepackaged gov't financed bankruptcy is the only way these companies can survive. The amount of changes that need to be made can not happen quickly enough if the companies are allowed to continue on with out the help of bankruptcy. Additionally, I think that the goverment could allocate a fund to back stop warranty work, provide bridge financing and other issues that may worry the potential buyers of these products (I believe much of the negative of a bankruptcy on the purchase habits of the consumer is in play today as the companies have had to paint such a dier picture to try to get congress to approve a bail out that many of the consumers are unsure and hesitate to buy).

THE BIG 3 AUTO COMPANIES HAVE 47% DOMESTIC MARKET SHARE. THE OTHER 37 COMPETITORS HAVE 53% DOMESTIC MARKET SHARE. When is someone going to tell the entire auto story? We need a 21st Century US Manufacuturing Srategy and a 21st Century Energy strategy. The foreign auto companies are virtually funded by their home country. The foreign home country funds employee health care, employee pensions, R & D, provides no cost or low cost money, have protectionist laws, pay lower corporate taxes, and HAVE PROTECTIONIST LAWS. Senator Shelby has provided $2-3BILLION in incentives to 4 foreign auto plants to come to Alabama who import the component parts, assemble them to make an auto, then claims they are "made in America". PLEASE PROVIDE THE LISTING OF THE OTHER STATES WHO HAVE DONE THE SAME THING and how much of taxpayer money they have spent to accomplish this. ie Tennessee, Georgia, South Carolina etc. I really wish you all would tell the entire story. We need to keep manufacuturing in this country

Alexis-Someone in the media has to tell the entire auto story. WE NEED A 21ST CENTURY MANUFACTURING STATEGY IN THE USA. WE NEED A 21ST CENTURY ENERGY STRATEGY SO THAT THERE IS AN INFRASTRUCTURE FOR ALL THESE ALTERNATIVE FUEL VEHICLES THAT ARE BEING DISCUSSED. The Big 3 has 47% Domestic market share while the other 37 or so foreign auto competitors have 53% Domestic Market Share. Foreign Auto Companies are partialy owned by their government. These govenments pay for employee health care, employee pension, R & D, provide low or no cost money to the company, have protectionist laws for their country, and have lower corporate taxes for the company. US companies pay for all this and the USA has the 2nd highest corporate tax in the world. Senator Shelby from Alabama provided $2-$3 BILLION in assistance to 4 Foreign Auto Transplants to his state. This is taxpayer money. What are the names of the other Senators and Congress-people who have also done this? AND.....these foreign auto transplants ship the component parts into the USA to their location and assemble the auto then claim it is made in America. Why isn't anyone making any noise about the Nancy Pelosi private planned manned by government employees, paid for by taxpayers? She is the leader of the Congress that has BANKRUPT THE COUNTRY!! Why doesn't Congress work for $1/year? The role of the media is to report the facts and I keep waiting for the rest of the story.

Nardelli is an idiot...he doesn't answer the questions...why does he have to say her name "Alexis" every 3 words?....why won't Cerberus invest in Chrysler? They OWN Chrysler...no taxpayer dollars unless Cerberus antes up!!!!! Otherwise, let them die...

Wow, Nardelli totally avoided the question, "Who is going to buy those 11 million units?" (paraphrasing). That was some very artful dodging. And did I miss something, or did the letters UAW never come up? I'll admit to having other windows open at the time and could have missed it. Still, that (along with mismanagement) is the primary cause for the Big Three's current problems. I'd love to know what happened to all that money they made during the early SUV boom - you know, the 5-7 years where they were selling 1970's-1980's technology for late 90's prices. That said, Nardelli sure got one thing right. Electricity is most definitely a superior method for powering a vehicle than natural gas. Perhaps the Big Three could turn all their assets over to Tesla Motors (www.teslamotors.com), and we could have a company who actually wants to create (and has already produced) an outstanding electric car, and are currently working on their second model.

Mr. Nardelli's comments are accurate. The failure of the financial institutions through their reckless lending leading to the credit freeze turned the auto market from 17 million units to 10.5 million units overnight. Take any high capitally intensive business and gut 40% of its sales and see if it can stay viable for long. On top of that Chrysler and the Big 3 pay for all health benefits and pensions unlike their Japanese competitors. What Fox should be reporting is why the financial institution CEOs are not testifying to their plans. They are given billions carte blanche, no questions asked (i.e. Citibank, Bank of America, etc,). Why??? Where's the oversight even after the fact. Congress is hypocritical and will drive this country into a depression using the Big 3 as some sort of misguided example to make up for their complete lack of due diligence with the financial institutions. Pathetic! C'mon Alexis, don't be like Congress. Interview the root cause - the jackasses that run Citibank et al. Their hiding in the weeds and getting a free pass. Response?