[Marxism] Chrysler to replace CEO?

Waistline2 at aol.com Waistline2 at aol.com
Tue Apr 14 14:03:57 MDT 2009

If you were surprised by the "resignation" of GM chief Rick Wagoner late  
last month, get used to the idea. Chrysler reportedly has some major 
management  changes in store as well, including a new seven-member executive board 
including  representatives from Fiat and the Obama administration's 
automotive task force.  But while Bob Nardelli may stay on to chair that board, 
Chrysler's next CEO may  not even be American. Sources close to the ongoing 
negotiations between Chrysler  LLC and the Fiat Group suggest that part of the 
new arrangement could see Fiat  CEO Sergio Marchionnne taking the top job at 
the Detroit automaker with which  he's jumping into bed.
Sound crazy? Not as crazy as you might think. The architect of Fiat's  
impressive turn-around from a struggling conglomerate into one of Europe's  
biggest automakers, Marchionne is a Canadian citizen and was educated just a  
hop, skip and a jump away from Detroit in Windsor, Ontario. Further, he holds  
court twice a month at the suburban Chicago offices of Fiat's agricultural  
subsidiary, Case New Holland. Obama has publicly praised Marchionne's  
management, which could see him take a hands-on approach to running the two  
allied companies similar to how Carlos Ghosn, another highly rated European  
automotive executive, runs Nissan and Renault. 
Chrysler and Fiat have until the end of the month to iron out a plan, but  
it may be more complicated than straight-up bilateral negotiations, as 
several  third parties also figure into the mix. First is Cerberus Capital 
Management,  which owns a majority stake in Chrysler at the moment. Next up is 
Daimler, which  is still locked in negotiations with Cerberus to offload its 
remaining stake in  Chrysler. After throwing in representatives from the 
United Auto Workers, some  of America's biggest financial institutions (many not 
faring much better than  Chrysler themselves) hold several billions in the 
company's debt. Sure,  Marchionne may get the job, but he's going to have one 
heck of a time getting  all this sorted out.
[Source: Automotive News – subs. req'd]

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