Wharton School of Business Article



His most difficult period at Chrysler was spring 2003. He had arrived in Detroit in November 2000 and begun a major restructuring. The company was meeting milestones, but after the September 11, 2001, terrorist attacks in the United States, automakers initiated marketing incentives that drove down margins for the entire industry. "Things got really bad in the first quarter, and by the second quarter, we were going to show significant losses," said Zetsche. Earlier in the restructuring, he could blame problems on prior management. This time, the losses were coming on his watch.