Years ago I visited Chrysler headquarters in Auburn Hills, Michigan on a business trip, just after their purchase by Daimler Benz. I noticed a Mercedes Benz C-Class sedan in the expansive reception area and asked my executive host “What do your employees think of a Mercedes in your headquarters?”

“It’s not so bad.” He replied. “…we’re probably handling it better than the German’s who now have a minivan in theirs.”

Alas, the Germans were not able to make a go of Chrysler and sold them for a loss to Cerberus some time ago.

Now the Italians, not known for their domination of the business world, let along the automotive industry, are quickly taking charge and striking fear into executives at Fiat’s new American arm, Chrysler.

When Chrysler’s crisis-weary staff gathered in their Michigan headquarters this week to hear an address from their new leader, Fiat’s chain-smoking Sergio Marchionne, the atmosphere was far from ebullient.

“Numb” was the word one Chrysler manager used to describe the mood.

The American automotive industry’s woe’s can not be tied to a sole cause. A combination of management’s short-sightedness, government over-regulation and a union bent on an unsustainable model of “work less, make more” all conspired to gut an industry, once a source of national pride.

“The Cadillac of…(fill in the blank)” is now a sad anachronism in a era of Cimarron’s and rebadged Tahoes and Suburbans – not that Fiats are known for their excellence in craftsmanship, design or durability.

But apparently, unlike many American’s in the sector, the Italian’s know how to work.

Chrysler’s employees have some reason to be wary. At Fiat, where Mr Marchionne is both respected and feared, he has shunted aside underperforming managers and expects underlings to join him working nights and weekends.

Discounting the blow to national and corporate pride among the ranks of Chrysler workers, this isn’t so bad in light of the alternative. Had the deal with Fiat not closed this month, Chrysler would have almost surely been liquidated. An 80-hour work week seems a fair alternative to a zero-hour one.

…and an apt prescription, in contrast to our President’s socialistic policies, for the relief of the Great Recession.

How ironic is it that we find ourselves schooled on capitalism by the Italians?

Pass me the Chianti Classico.

This entry was posted by by Johnny Roosh on Sunday, June 14th, 2009 at 11:38 am and is filed under Business, The Economy and The Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.