Outsider CEOs Have a Definite Advantage: Nardelli

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Dec. 11 (Bloomberg) -- Robert Nardelli, senior advisor at Cerberus Capital Management and Daniel Hurwitz, CEO at DDR Corp., talk about the advantage of being a company outsider as a CEO and new General Motors CEO Mary Barra on Bloomberg Television’s “Bloomberg Surveillance.”

When you went to home depot, you did not have retail experience and when you want to chrysler you did not have car experience.

What is the benefit of getting a ceo from outside the company?

I take exception.

I was a consumer -- and you probably owned a car -- drove a car.

And tom and i worked on cars growing up.

There is a definite advantage coming in from the outside because you are not associated and you don't have a lot of the best the relationship with a lot of the legacy issues.

There is talk about mary having five priorities, worried about competition and making sure the brand are able to differentiate themselves and getting rid of the fiefdoms.

That one is going to be tough.

She has been there 33 years -- and responsible for a lot of the products so it is difficult to say if she can let some of her babies go.

So much bondage wear design engineers relate to these platforms like children.

The toughest thing i think for mary will be after 33 years, to turn her hat and bring an outside perspective to continue the change that dan has put in place.

It could be a better time for the transition.

If you look at where general motors is, they are now outside government control.

I wish dan's wife the very best with her health situation, of course.

What he has done a great job.

Pat russo, the lead director, she has done a great job.

Mary is stepping in, the good news, at the top, and the challenge will be to continue that momentum and the sales and so forth.

Color for us the importance as she goes to the new chattering general motors institute.

-- kettering general motors institute.

She is an engineer on the stanford, she has the magic of the degree from the general motors institute.

What does it mean?

It means a lot.

She really understands the inner workings, the granularity of what it takes to run a company like this.

The good news is she probably has tremendous support across the organization, having sat in many of these chairs.

She has good support, good working knowledge, operational focus.

The challenge will be the competition, to continue to enhance the platform to differentiate the brand.

She's got some globality issues with opel over there.

She will have to separators up a little bit and bring the outside in perspective to change what she has put in place.

That is the toughest thing a ceo has to do.

Dan hurwitz also joining us, the ceo of ddr.

Retail, margins versus sales.

What is it like in the car market?

Is it about products or operating margins?

At think it is both.

I think you have to have both.

If your product is exceptional you have a better chance of driving margin because demand goes up.

It is important you understand your product and where you can go with margins.

And it is important how you price the product.

Where you bring it in.

You bring it in at the hive, below, do you market down, maintain price?

A lot of games that get played with pricing.

At the end of the day, the margin cuts through all of that.

From where you sit looking a parking lot in malls, a lot of cars out there?

-- new cars out there?

A lot of new cars on a regular basis.

And you see it in new car sales.

What supplies are really high.

Will we see more discounting to offset the massive supply?

A very important point.

I think what happens is enthusiasm grows and you tend to not get closer to the cliff but

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change