Monday, 13 August 2007
The New York Times asks, “where have all the car guys gone?”
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Chrysler’s recent appointment of Robert L. Nardelli, former chief executive of Home Depot, to the position of CEO has left a lot of people wondering just how important an automotive background is in running a major car company. Sure, Nardelli likes Chrysler products – he owns a Jeep, Plymouth Prowler and Chrysler PT Cruiser – but he does not have the “motor oil in the veins” type of enthusiasm that has traditionally defined previous auto executives, according to The New York Times.
But Chrysler is not alone in its outsider appointment. Last year Ford Motor Company named Alan Mulally, former Boeing CEO, to the top company position. GM’s Rick Wagoner has been with the company for 30 years, but has not been directly involved (i.e. designing, engineering or marketing) in creating products on the road today. The Harvard MBA-holding Wagoner was appointed Chief Financial Officer at the age of 39 back in 1992 after beginning as an analyst in the treasurer’s office.
Furthermore, Toyota’s chief executive Katsuaki Watanabe has a background in economics and is considered an expert in purchasing. Many other top executives at Toyota are business leaders before auto enthusiasts. The philosophy at the Japanese manufacturer is one of collaboration, and the lone opinion of a “car guy” is not considered valid. “The days of just a car guy running with their gut feeling probably are, today, pretty difficult to do,” remarked Jim Lentz, Toyota executive vice president.
So what does the shift away from motor head executives signify in the auto business? First, American businesses especially have required new strategies in recent years to rebound from sliding market share and large financial losses. Experts outside of the industry can bring unbiased philosophies, treating the companies as businesses that need to be fixed and not as great American icons of the past.
But what might really be happening is that American consumers are treating vehicles more like everyday products and less like prized possessions that signify enthusiasm. Price and quality matter, as do ergonomics, fuel efficiency and reliability. The auto industry needs innovative and risk-taking leaders, regardless of their backgrounds.
Source: The New York Times
Image: Chrysler
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