
Bob Nardelli
Cerberus names Bob Nardelli as Chrysler CEO
Former CEO Tom LaSorda to hold No. 2 spot
Philip Nussel
Automotive News
August 6, 2007 - 12:01 am
UPDATED: 8/5/2007 11:19 P.M.
With the ink not yet dry on its purchase, Chrysler LLC has named the controversial former Home Depot CEO Bob Nardelli as the new chairman and CEO, says a source familiar with the situation.
Chrysler’s new majority owner, Cerberus Capital Management LP, was expected to announce the appointment Monday morning. A press conference was scheduled for Monday morning in Auburn Hills, Mich.
Nardelli, 59, served as the head of Home Depot from 2000 through January 2007, when he resigned. He left the retailer with a $210 million severance bonus.
The move was a surprise for two reasons. First, Chrysler had been expected to name former COO Wolfgang Bernhard to the top job. Bernhard was offered the title of non-executive chairman, but declined for personal reasons, says the source familiar with the situation. He is not expected to continue working with Cerberus.
Second, Chrysler already had a CEO -- Tom LaSorda. The source told
Automotive News that LaSorda will remain as vice chairman and president. The UAW and Ron Gettelfinger were consulted about the management moves, the source noted.
“Bob Nardelli is one of the top five CEOs in the world,” the source said. “We were lucky … to get him. He can benefit from Tom LaSorda’s experience.”
Cerberus was attracted to Nardelli’s retailing background -- experience which could help Chrysler improve its strained relations with dealers.
He is expected to work from Chrysler’s Auburn Hills headquarters. “The dealer network will like this,” the source said.
On Monday, Chrysler also was expected to unveil its new 11-member board of directors, which includes Nardelli and LaSorda.
Nardelli will not draw a salary, the source added. “Bob Nardelli will not make a dime until Chrysler turns around,” the source said. “His compensation will be tied to the equity value of Chrysler.”
In another senior management move, COO Eric Ridenour, 48, has chosen to leave the company to pursue other opportunities. His position will not be filled, the source said.
In addition to his six years at Home Depot, Nardelli spent 29 years working for General Electric Co.