It won't be Wolfgang Bernhard, and it won't be Tom LaSorda — we're hearing the new CEO of the newly independent Chrysler will be none other than ousted Home Depot CEO Bob Nardelli. More coming shortly — this stuff is hot off the wires, kids! Updates, including the full press release, below the jump.[NYT]
UPDATE: It looks like COO Eric Ridenour will probably be leaving the company. Also, Nardelli will be making his money through some weird not-normal executive way — via pay-per-performance.
Shoot, we forgot to post the press release earlier:
CONFIDENTIAL DRAFT August 5, 2007 6:00PM
NOT FOR IMMEDIATE RELEASE
CHRYSLER ANNOUNCES LEADERSHIP CHANGES
Bob Nardelli Appointed as Chairman and CEO; Tom LaSorda to Continue
with Chrysler as Vice-Chairman and President
NEW YORK, August 6, 2007 - Chrysler LLC today announced that its Board
of Directors has appointed Bob Nardelli as Chairman and CEO of
Chrysler LLC. The Board also announced that Tom LaSorda has been
appointed Vice-Chairman and President of Chrysler LLC, reporting to
"We are excited to welcome Bob to the Chrysler family," said LaSorda.
"Bob has a proven track record of success and an unwavering focus on
performance, and brings deep operational experience and a broad
industry background to Chrysler. His background in operations will
provide valuable knowledge as we continue Chrysler's turnaround."
"I am very excited to be part of a team focused on re-establishing
Chrysler as a standalone industry leader, with a renewed focus on
meeting the needs of customers," said Nardelli. "Chrysler has many
deeply talented and dedicated people, and I am confident that together
we can continue the momentum of Chrysler's recovery and return this
great American icon to a path for global growth and competitiveness."
In addition, Eric Ridenour, Chief Operating Officer, has elected to
leave the new company to pursue other opportunities. The COO position
will not be filled going forward. "Eric gave this company 23 years of
great service and leadership," said LaSorda. "We wish him well in his
Concurrent with the close of the Chrysler transaction on August 3,
2007, the new Board of Directors of Chrysler LLC was formed. It
consists of 11 members, including Nardelli, LaSorda, representatives
of Cerberus and Daimler, and independent directors.
Cerberus and Chrysler would like to thank Wolfgang Bernhard for his
contributions leading to the closing of this transaction. Both
Cerberus and Chrysler had looked forward to his continuing
contributions as non-executive chairman of Chrysler, however due to
personal and family reasons he was not able to accept that role.
Cerberus has also asked, and Tom LaSorda has agreed, to serve as the
Vice-Chairman of Cerberus Operating and Advisory Company LLC (COAC),
Cerberus' proprietary operations advisory affiliate. In that role,
Mr. LaSorda will assist in the continuing development of COAC, which
works closely with the portfolio companies in which the funds and
accounts managed by Cerberus are invested.
Prior to joining Chrysler, Nardelli served as Chairman, President and
CEO of The Home Depot beginning in 2000. During his tenure at The
Home Depot he doubled sales as well as the number of store operations;
moved globally into Mexico and China; and delivered more than 20
percent earnings-per-share growth for four consecutive years while
growing dividends from 16 cents to 90 cents per share. Nardelli also
has extensive senior operations experience in manufacturing and
Nardelli received his bachelor's degree in business from Western
Illinois University and earned a Master of Business Administration
from the University of Louisville.
Nardelli, an Atlanta resident, chairs the Atlanta Board of Visitors of
the Savannah College of Art and Design and has also served on
President Bush's Council on Service and Civic Participation. He has
also chaired the advisory board for the nonprofit group Hands on
Network and strongly supported KaBoom!, a national nonprofit
organization building community playgrounds. Nardelli has received
numerous awards for his strong support of military veterans, and
received the Distinguished Pennsylvanian Award from Gannon University
(1995) and the Distinguished Alumni Award from the College of Business
and Technology at Western Illinois University (1997 and 1999). He is
an alumni fellow and 2001 Alumnus of the Year of the University of
Louisville, and serves on the National Visiting Committee Advisory
Board, University of Louisville Graduate School of Business.
About Chrysler LLC
Chrysler LLC, headquartered in Auburn Hills, Michigan, produces
Chrysler, Jeep(r), Dodge and Mopar(r) brand vehicles and products.
Total sales worldwide in 2006 were 2.7 million vehicles. Sales outside
of North America were the highest in a decade with an increase of 15
percent over 2005. On the heels of the company's record product launch
year (Chrysler launched 10 all-new vehicles in 2006), the company
plans to extend that streak with eight all-new products in 2007. Its
product lineup features some of the world's most recognizable
vehicles, including the Chrysler 300, Jeep Commander and Dodge
Charger. The Chrysler Foundation, the company's philanthropic arm,
gave $23.6 million in grants in 2006.
About Cerberus Capital Management, L.P.
Established in 1992, Cerberus Capital Management, L.P. is one of the
world's leading private investment firms with approximately $26
billion under management in funds and accounts. Through its team of
more than 275 investment and operations professionals, Cerberus
specializes in providing both financial resources and operational
expertise to help transform undervalued companies into industry
leaders for long-term success and value creation. Cerberus is
headquartered in New York City, with affiliate and/or advisory offices
in Atlanta, Chicago, Los Angeles, London, Baarn, Frankfurt, Hong Kong,
Tokyo, Osaka, and Taipei. More information on Cerberus can be found