Chrysler CEO Bob Nardelli Confirms Departure

April 30, 2009: 01:59 PM ET


DETROIT -(Dow Jones)- Chrysler LLC Chief Executive Bob Nardelli confirmed Thursday he will leave the auto maker after it completes the bankruptcy protection process.

Nardelli, who took over the leadership role on Aug. 6, 2007, said he decided that now was the time to announce his departure and that he wasn't asked to step down by the Obama administration. He will return to Chrysler owner Cerberus Capital Management as an adviser.

"Now is an appropriate time to let others take the lead in the transformation of Chrysler with Fiat," Nardelli said in a statement, referring to the alliance agreement with the Italian auto maker. "I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance."

The exit of Nardelli, the former Home Depot CEO, clears the way for Fiat SpA ( FIATY) CEO Sergio Marchionne to either take over the top spot or name a successor. Fiat will contribute advanced technology and offer Chrysler access to a global distribution network. The Italian company will get an initial 20% equity stake in the reorganized company.

Nardelli foreshadowed his own departure on April 17 when he sent a letter to employees telling them that Chrysler's future leadership would be decided jointly by the U.S. government and Fiat. The two entities will appoint a new board of directors.

"The board will have the responsibility to appoint a chairman," Nardelli said in the letter. "The board also will select a CEO with Fiat's concurrence."

One possible successor could be Vice Chairman Tom LaSorda, who knows the company's manufacturing operations and has earned widespread respect from both United Auto Worker and Canadian Auto Worker union members since he was an hourly line worker in Canada.

He joined Chrysler in 2000 as a group vice president after 23 years at General Motors Corp. (GM) LaSorda was named CEO in 2005 but then stepped aside when Nardelli was installed as CEO by Cerberus.

The future of Chrysler Vice Chairman Jim Press is also unclear since he was also installed by Cerberus in September 2007 after a long career at Toyota Motor Corp. (TM).

Nardelli sad he decided that now was the time to announce his departure and that he wasn't asked to step down by the Obama administration.