[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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