Cost-Cutting Capitalist Robert Nardelli Named Remington CEO
New Chief Executive at Remington Arms
Robert L. Nardelli has been selected as the new CEO of Remington Arms Company. Remington is part of the Freedom Group, Inc., which is owned by Cerberus Capital Management, a private holding company. Prior to taking over the reigns at Remington, Nardelli has served with Cerberus as a leading executive.
Nardelli’s Chrysler Years
Mr. Nardelli joined Cerberus in the spring of 2007, and, shortly thereafter, was named Chairman and CEO of Chrysler Motors Company, LLC. He was noted for aggressive cost-cutting at Chrysler and for improving build quality which reduced warranty claims. Nonetheless, Chrysler filled for Chapter 11 bankruptcy in 2009, and Nardelli was replaced as Chrysler CEO by Italian Sergio Marchionne who has guided the Detroit automaker from bankruptcy to profitability.
Nardelli Aggressively Cut Costs and Streamlined Operations at Home Depot
Before his stint at Chrysler, Nardelli served as Home Depot’s Chairman and CEO. Prior to that, Nardelli was CEO of General Electric Power Systems. Nardelli’s tenure as head of Home Depot was controversial. Using the Six Sigma management strategy he learned at GE, Nardelli dramatically overhauled Home Depot. He streamlined operations, most notably implementing a computerized automated inventory system. Many of those moves were effective (revenues rose from $46 to $81.5 billion in six years) but Nardelli’s autocratic management style turned off employees and the public. Nardelli was notably criticized for cutting back on knowledgeable full-time employees with experience in the trades and replacing them with part-time help with little relevant experience. This move reduced costs, but hurt customer service. Home Depot’s stock price stagnated, and the company lost market share to Lowe’s. Nardelli left Home Depot with a massive $210,000,000 severance package — a “golden parachute” that drew criticism from Home Depot shareholders (and members of Congress).
Changes Ahead for Remington?
Will Nardelli shake up Remington the way he did Home Depot, streamlining operations and laying off senior employees? Will we see further consolidation of manufacturing among Freedom Group brands? Only time will tell. Nardelli’s policies will be formulated, to be sure, to match the larger objectives of Cerberus. But Nardelli has a reputation as a tough cost-cutter, so changes may be in store for Remington Arms Company, the oldest continuously-operating manufacturer in North America.
About Freedom Group, Inc.
Freedom Group is one of the world’s largest manufacturers of firearms and ammunition. The Freedom Group embraces multiple brands including Remington, Marlin, Harrington & Richardson, New England Firearms, L.C. Smith, Parker, Bushmaster, DPMS/Panther Arms, EOTAC, and INTC.
Similar Posts:
- Parent of Remington, Marlin, Bushmaster Suffers Hedge Fund Woes
- Torbeck Takes Over at Remington Arms. Millner Becomes Cabela's CEO.
- Freedom Group Files for Public Offering This Year
- NRA Debunks Claims that George Soros Controls Freedom Group
- Cerberus Plans IPO for Freedom Group Companies (Remington, Bushmaster, Marlin, DPMS, H&R)
Share the post "Cost-Cutting Capitalist Robert Nardelli Named Remington CEO"
Tags: Bushmaster, Cerberus Capital Management, Chrysler, Freedom Group Inc., Home Depot, Remington Arms Company, Robert Nardelli
Great, now we can expect more junk from Remington. It’s sad what is happening to our American Firearm manufacturers. They are cutting quality for the sake of executive compensation and shareholder dividends. Though Savage is still doing pretty well and the new Model 70’s are still made in the US; they are probably the best and most overlooked commercially produced rifle out there. However, Remington, Thompson Center, and Ruger seem to be headed in the wrong direction.
He failed at Chrysler and failed at Home Depot. Why would anyone hire him to manage their company? Just another autocratic suit with no soul or love for the firearms industry. He will try to sell firearms like they were refrigerators and fail at that also. Sadly he will take Remington Firearms down with him.
Being a contractor, I have frequented Home Depot since its inception. I did not know this Idiot took over a while back but I Did notice that Ex contractors who knew their shit were all of a sudden GONE from Home Depot and a bunch of near minimum wage morons were now trying to help me but were utterly clueless. They lost a LOT of money from me as I took my business to slightly higher priced local lumber yards where I can have someone knowledgeable assist me. This guy will F&^k up Remington too and most likely get almost a quarter of a Billion dollar Golden parachute too.
Centralize power then collapse…Sounds like our gov.
This bean counter fires dedicated, life long, knowledgeable, devoted craftsmen who love their jobs and have untold ammounts of hard earned knowledge and decades devoted to their company and its quality so he can hire foreigners at minimum wage and save a couple of bucks. Guess what? When you start to have recalls because you have switched everyone from quality to quantity the customers aren’t stupid and will abandon ship on you real quick. Why would anyone work for this guy? Knowing your seniority, knowledge and dedication means the axe in the future? Foreigners will work for him because they just dont understand nor do they care about a secure future.
Sad, sad situation that cut-throat, slave drivers and pimps like this guy create for hard working Americans and the “Made in the U.S.A.” label. I guarentee he wanted to ship all Remington’s work to China until the lawyers told him firearms are regulated and a little different than screwdrivers and bumpers. He will probably ship everything to China other than the regulated recievers. They just shot themselves in the foot and it might be fatal. If he fires the senior factory employees and workers I will personally boycott all Remington products as a show of loyalty to my fellow American workers. I bet this bean counter dosen’t know a muzzle from a recoil pad yet someone let him run the ship. He will be the death of Remington.
My brother clued me in to this morons M.O. while he was a construction site Inspector for a Home Depot owned subsidiary. They were forced to fire all the senior (and therby the most knowledgeable)employees because they made the most money and had the most leave. Nevermind they made the company the most money in the past which is how they got to the top. Then after He ruined many careers and lives he sold off the company because the numbers looked good (and he knew soon it might sink with no seniors).
My poor fellow Americans:
You are just about to see the downfall of one of the oldest name in the American firearms industry…
Maybe Remington should have hired that Italian guy who put up Chrysler back on track?
I think the ideal CEO for Remington would have been a person interested in the outdoor or hunting/shooting, in his late 50s early 60’s, who is not interested by a huge salary but driven by a passion to put remington on the right track, who understand craftsman ship. 2012 is gona be tough…Worldwide
Scaberus and their good ole boy club is the kiss of death and ruination of everything they touch. If you want a Remington you better act quickly before nardelli’s “reforms” kick in!
It may be a very sad day for Remington.
To me this seems even more ominous, knowing that George Soros, a megabuck financier committed to global gun control, is a major investor in Cerberus.
EDITOR: This is absolutely incorrect. This is an internet-spawned myth. Soros is not a major investor in the Freedom Group or Cerebus. The NRA Institute for Legislative Action (IRA-NLA) notes on its web site:
Recently, an old rumor regarding Cerberus, the private equity firm that owns Freedom group, a holding company that in turn owns a number of firearms manufacturers, including Remington, Marlin, Bushmaster, and DPMS, was in some way tied to George Soros.
This rumor is completely false and baseless.
NRA has had contact with officials from Cerberus and Freedom Group for some time. The owners and investors involved are strong supporters of the Second Amendment and are avid hunters and shooters.
In reality, at no time has George Soros ever been a part of the ownership group of Freedom Group or Cerberus, and as a privately traded corporation, there is no possibility that he will be in the future.
This unsubstantiated rumor has caused a great deal of unnecessary concern for gun owners. NRA-ILA urges our members to take great care before repeating baseless rumors found on the Internet.
Bye, Bye Remington.
Nic,
I think you just described me. Here is my offer to Remington, I promise to run your company with the best of intentions for the consumer, the product, and your good name.
However, if you are not interested in any of that, then I’ll foolishly run your company into the ground for half the price that Robert Nardelli is asking!
Capitalism is self correcting. If you get over being sentimental about a brand, it’s all about price and quality. If Remington’s quality declines we will stop buying their products – regardless where they are made or who makes them. The firearms industry is very unforgiving when it comes to reputation.
If Remington declines, there are plenty of other firearms manufacturers that will fill the void with higher quality products. Give the growth opportunities where they belong – with smaller innovative and high quality manufacturers and stop crying about losing another dinosaur brand.
Good news perhaps for custom smiths and a few brands like Savage and Sako. Aside from a circa 2006 LTR and the 5R “mil-spec” I haven’t had a desire to own any Remingtons. Can’t imagine that will change now.
A rampant American trend..
This is not good. Not only is Remington sitting on some really cool designs, now they do this. Those designs may never see the light of day.
I am referring to their MSR and AR rifles listed on their military site.
sigh…
@patrick you fail to understand that while “capitalism works” might be true your scenario fails to adress customer support, warranty work, and all the aftermarket options that come from the “dinosaur” brands becoming prolific in the marketplace. Ever wonder why only select gunsmiths work on or accurize small company- new company rifle brands and if they do why its 10x the price of working on a Remington? You can build a Chevy small block 350 for half the price of a ford, chrysler, buick, etc.. Why? Because it (350 block)is a PROLIFIC DINOSAUR. Buying from a company that wont be around in 5 years or buying a rifle model that wont be around in 5 years is a waste of money IMHO. I agree the bad quality companies need to fall by the wayside and be replaced but that dosen’t mean I cant hope for iconic dinosaurs to survive and save themselves from a high functioning retard at the helm and a self inflicted gunshot wound.
I have forseen this happening a long time ago when all of this buyouts started, when all of these companys went under the same group. The owners are not firearms lovers at all, when the owners sucked up all of the companys that was possible to be tricked in to this conglomerate, they will get a moron to run it and put it in its grave and blame it on the economy. Then the left wing fanatics will be having there way and get rid of a number of firearms makers at once. I just don’t see why no one say this coming and stayed away from these people. I just can’t figure it! It is the oldest business move in the book! Buy them up and close the doors! Then no more firearms companys. Just hope the rest of the companys see this for what it is and not let it happen again!
There are unfortunately two distinctly different interests affected… The profitability of the comapny and the confidence of its consumers.
I would be all for a far leaner meaner Remington, but with a return to quality.
If they would embrace market demands in ways their competition has to great success (Savage with their off-the-shelf actions, reasonable priced and excellent quality competition rifles, Tikka/sako with hunting rifles of accuracy and quality unsurpassed)
Whether Mr. Nardelli will make the changes by off-shore building, faith in such dogs as the 710, and an almost dogmatic refusal to cater to the F-Class or Palma, or fixed position shooting sports remains to be seen.
If I were him, I would head hunt the senior executive management at Savage. They know how to make customers happy.