Chrysler CEO: We've All Made Mistakes
After his testimony on Capitol Hill, Chrysler CEO Robert Nardelli spoke with CBS News anchor Katie Couric. She asked him how he could convince the majority of Americans who oppose a government bailout that it's the right thing to do. What follows is a transcript.
Robert Nardelli: I think part of today and hopefully through our discussion here we can provide a differing perspective. So for example there are about a million people count on Chrysler's success - if you look more broadly about one out of 10 Americans here either work for or support the auto industry, so if the auto industry was to collapse, Katie, it would have a huge impact - a cataclysmic collapse of between 2 million and 3.5 million jobs unemployment. If you want to talk about systemic impact, just in the three manufacturing companies, there are about $300 billion of equity from the financial institution of debt that would go away. If you look at the suppliers, the three of us pay about $150 billion a year to our supplier base. So this thing has broad tentacles. I can't imagine it doesn't touch every American in some form or fashion in their neighborhood, rural, suburban areas, if this industry goes away.
Katie Couric: An economist, Mark Zandi, testified alongside you today said he believed the Detroit Three bailout costs could reach anywhere between $75 and $125 billion, and there high probability you'd be asking for more money within a year. Is that a possibility this $34 billion bailout could be followed by another "ask" down the road?
Nardelli: We did not present a plan today with the expectations that we would come back in six months or one year. They asked for us to present a plan that had viability for the long term, and that's what we submitted today, Katie.
Couric: Can Chrysler survive bankruptcy?
Nardelli: If we went into bankruptcy it would cause tremendous dislocation in health care, pension, wages, suppliers. So we think - and we've consulted with outside experts to do the cash flows and impact - it would cost us in bankruptcy two to three times more than what we're asking for, Katie, up front.
Couric You came from Home Depot to run Chrysler. You had to be a quick study, but from what you've learned, what was the U.S. auto industry's biggest mistake?
Nardelli: Well I think, look, we've all made mistakes. I've been in business for 38 years, and whether I was at GE or Home Depot or Chrysler, I think the important thing now is to look at this crisis. How do we make sure that we are repositioning ourselves that we break from some of those old paradigms to make sure that we are making new products that we are delivering service to customers, the kinds of cars and trucks they want to drive, have the conficence to drive and will tell their friends about it, Katie.