Auburn Hills, Mich. – Chrysler got a taste of its new owner’s swift and decisive style Monday as its chief executive was demoted and the former head of Home Depot was tapped to lead the automaker through a major restructuring.
Bob Nardelli, who left The Home Depot Inc. in January after a shareholder rebellion over his outsized pay, was named chairman and CEO of Chrysler LLC, replacing Tom LaSorda, who is taking the No. 2 slot. The changes came three days after private-equity firm Cerberus Capital Management LP acquired a majority stake in Chrysler.
“The new Chrysler has the opportunity to prove that the private business model can thrive in this industry,” Nardelli said. “We have an opportunity to … make a significant change in the auto industry.”
LaSorda said Nardelli is a strong manager who has helped companies grow and he is happy to be working with him.
“He’s always been a winner, every business,” LaSorda said. “Leave the egos at the door. Let’s turn around this company.”
It marks the second time in less than a year that an auto-industry outsider has come to the rescue of one of Detroit’s struggling automakers. Ford Motor Co. named former Boeing Co. executive Alan Mulally as its president and CEO in September.
Aaron Bragman, an auto-industry analyst with the consulting firm Global Insight, said that Detroit needs outside help as it tries to reverse its fortunes. Last month, foreign brands captured more than 50 percent of the U.S. market share for the first time.
Nardelli said he’s simply there to offer his expertise to Chrysler as it proceeds with its restructuring plan. Nardelli said he was impressed with the vision and specifics in that plan, which includes cuts of 13,000 hourly and salaried jobs in the U.S. and Canada by 2009.
