21 Aug, 2007 | by Richard Vinhais
The recent news of New York base Cerberus, a private equity firm, buying and 80.1 percent stake in Chrysler from Daimler Chrysler AG for $7.4 billion has been major news to say the least. Business enthusiasts and investors have been speculating tirelessly in recent weeks as to how effective former Home Depot CEO, Robert Nardelli, will really be. I figured I’d throw my humble opinion into the speculative arena as well.
Robert Nardelli, a product of GE during the Neutron Jack years, is mainly known as a methodical cost cutter during his six years while at Home Depot. He was credited for doubling sales and the number of store operations while expanding into Mexico and China as well as delivering more than 20 percent earnings-per-share growth for four consecutive years and more than quintupling its dividend to 90 cents a share. continue reading »
4 Aug, 2006 | by Richard Vinhais
It’s been a while since I spoke to the GM saga, so I figured I’d chime with some interesting new developments. I recently read a great Fortune article about Carlos Ghosn, the CEO of both Nissan and Renault. It seems the prospect of fixing GM has struck Ghosn’s fancy. This new found interest could most succinctly be attributed to an invitation to assist by GM’s largest shareholder, Kirk Kerkorian. Kerkorian, who owns roughly 10% of GM, has made his presence felt by publicizing his dissatisfaction in the speed and steps being taken in the turnaround effort.
Enter Carlos Ghosn: Ghosn has been dubbed a turnaround specialist, by financial analysts and industry experts, for his past successes with reviving both Nissan and Renault. It seems Ghosn has proposed an alliance between his two organizations and GM. You heard me right. And here you thought he already had too much on his plate! continue reading »
12 Apr, 2006 | by Richard Vinhais
I’ve been watching the GM saga unfold before the public eye for some time now. My interest was especially peaked after reading a Fortune Magazine article dubbed “The tragedy of General Motors”, February 20, 2006 issue. It’s scary to think an American company of that size with its rich history is on the brink of bankruptcy. Lagging sales, struggling subsidiaries, rising health care costs and a unionized workforce on the verge of going on strike are just a few of the challenges GM is facing.
The implications of such a catastrophic event are mind boggling. Think about it… continue reading »