Sales: D
Under Nardelli and Cerberus, Chrysler has only topped DaimlerChrysler year-over-year sales numbers in one month: December, 2007. So why not a solid "F?" Because product that the new Chrysler management team had any control over the design of is only now coming to market. What they've done with their inheritance has not been impressive, but what happens in the next 12 months is going to be a more accurate assessment of Chrysler's new sales strength.

Product: B
Before you scoff, read the paragraph above. Chrysler's new management team had little control over product that's only now hitting showroom floors due to the industry's notoriously long lead times. As the Detroit News mentions, Nardelli spearheaded an effort to make as many improvements as possible, including nearly 500 line-item changes to its cars and trucks. So, points for effort, but the next 24 months are going to be far more critical from a product perspective.

Finances: C
Chrysler can't seem to sell much of anything, yet the company reported a $1.1 billion profit for the first half of the year — before taxes, amortization and other nastiness (it was parent company Chrysler Holding LLC that lost $515 million). As the Detroit News points out, the figure doesn't mean the automaker is profitable, but it does indicate their cash flow is healthy. Still, if Chrysler can't create some high-demand new product, the equation will likely change — and fast.

Press Management: B
For all the bad news at Chrysler in the past 12 months, the spinmeisters in Auburn Hills have done a remarkably good job at controlling leaks, managing negative reports, and quashing rumors. Granted, some press complicity is at work — many outlets were willing to give the new organization some time to get its feet wet — but Chrysler has responded to speculation quickly, then let it die. For example, the rumor last June that half of Chrysler had been sold. Chrysler's response? "No, it hasn't." Now piss off.

Opacity: A
The beauty of being owned by a private equity firm is that you don't have all those pesky disclosure obligations. Chrysler tells us what Chrysler wants to tell us, barring the occasional financial leak or creative newspaper math.

Employee Morale: D
It isn't a fun time to be working at Chrysler. Far from infusing a startup culture at Chrysler, layoffs and continued bad news have many employees concerned. The Detroit News quotes Mark Mitchell, a skilled trades worker at Chrysler's Sterling Heights Assembly plant: "We are not confident in Nardelli at all because of his lack of experience in the automotive industry. A lot of people here are worried about losing their jobs." Of course, if we built Sebrings and Avengers, we'd probably be worried too.

Overall? We give Nardelli and Cerberus a solid C for their efforts. It's been a rough year, but things are tough all over, and Chrysler has made some pretty ballsy moves. We're interested to see where Chrysler is in another 12 months — or whether it exists at all.

[Source: Detroit News; Photo: Bill Pugliano/Getty Images]

"Chrysler's product pipeline severely lags the industry on a number of key metrics, which is an ominous sign for its market share. We believe that this is an active decision by new owners to rationalize the product portfolio in advance of a breakup/sale."

The argument that Chrysler is entering a product drought in advance of a sale also doesn't sit well with some industry watchers. Although the company doesn't have any major product reveals scheduled for the next year, they have one of the youngest vehicle lineups currently on the market. Others claim that Chrysler is reducing product in a long-term effort to become more competitive with a smaller fleet, and at the same time force weaker dealers out of business by depriving them of products during the current industry downturn. Such a move would allow Chrysler to pare down its dealer body without expensive — and potentially litigious — buyouts and consolidations.

Whatever happens, we do tend to agree with at least one Cerberus statement: "You can't judge an investment like this after just one year." Only question — does Cerberus believe that? [Freep, Photo Credit: blog.vehiclevoice.com]

The bankruptcy rumors seem to have sprung from reports this week that Chrysler drew down on a line of credit from Daimler. However, under Cerberus' purchase terms, Chrysler had to exercise the credit line before Aug. 3, so there's a "use it or lose it" component to the whole financial story too. Chrysler spokespeople state that the borrowing of $1.5 billion from Daimler and $500 million from Cerberus is not an indication that the company is having cash flow problems, and that Chrysler has $9 billion in cash. Sure sounds good, but all the "categorical denials" and "without merits" pouring out of Auburn Hills don't do much to soothe the nerves.
[BusinessWeek]

Attempting to close on a high note, Nardelli said "We have great vehicles to sell. And keep talking up our products to your family, friends and neighbors." Unfortunately, most of Chrysler employees' family, friends and neighbors are grappling with their own layoffs and foreclosures, so putting a new Sebring in the garage isn't a top priority.
[Freep, Photo Credit: Daylife.com]