The Automotive News, an industry magazine, reported Monday that the chief executive officer of Fiat, Sergio Marchionne, would be at the helm of affairs of the restructured board. Bob Nardelli, who was appointed by Chrysler's private equity owner Cerberus Capital, has held the position of Chrysler’s chairman and CEO since 2007.
Sources familiar with the matter revealed that the new management structure would entail that the roles of CEO and chairman are divided between the two executives. Thus, the role of the chairman would be assumed by Bob Nardelli.
News has it that the new seven-member board would have representatives from Fiat and might also include members of President Barack Obama's auto task force. The news broke out as May 1, the deadline fixed by the Obama’s task force for Chrysler to streamline its business, draws near. It may be recalled that the task force had rejected Chrysler's Feb. 17 restructuring plan.
Chrysler spokesman Todd Goyer said of the restructuring, "The job of Chrysler's current management team is to get the company on a solid foundation." The Fiat spokesman made no comment on the matter.
The two companies have time till the end of April to work out a mechanism wherein they could work together. If a deal between the two materializes, the government would mull over investing an additional $6 billion in the venture. As on date, Chrysler already has $4 billion of government loans.
Although the specifics of the deal were not divulged, the broad outline of the deal is that Fiat will take a stake in Chrysler. In return the Italian car company would give access of its small car technology and vehicle platforms to the Auburn Hills, Michigan based Chrysler.
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