Kidder to lead Chrysler in new era with Fiat

CHRYSLER has named former Duracell International chief and a one-time Ford Motor Co consultant Robert Kidder as its incoming chairman, replacing Robert Nardelli who will quit the embattled US auto giant once it emerges from bankruptcy and completes its alliance deal with Fiat.

The position of chief executive for the newly named Chrysler Group is still to be announced, although overseas reports indicate that Fiat CEO Sergio Marchionne should assume the role.

This will be one of the first decisions from the still-to-be-formed Chrysler Group board, which will include four directors appointed by the US treasury – which has $US8 billion tied up in loans with Chrysler – and three appointed by Fiat.

Mr Kidder’s appointment counts as the first nominee from the US government, while Fiat choices named in overseas reports include Fiat Powertrain Technologies CEO Alfredo Altavilla and petroleum powerbroker Lou Noto.

Interestingly, Mr Noto also sits on the board of the Penske Automotive Group, which is a potential bidder for General Motors’ Saturn marque – and which confirmed last week that it had hired recently departed Chrysler president Tom LaSorda as a consultant.

A former senior executive with GM, Mr LaSorda left Chrysler after it filed for bankruptcy on April 30 and will almost certainly be advising Penske on its possible bid for Saturn as GM itself faces Chapter 11 bankruptcy when the latest government-imposed restructuring deadline expires at the end of this week.

Left: Chrysler's Bob Nardelli. Below: Fiat's Sergio Marchionne.

GM is attempting to sell Saturn, Saab and Hummer, and is negotiating over the possible sale of Opel and Vauxhall. Fiat is on the shortlist as potential proprietor of all bar Saturn, which in turn has led to claims that the Italian manufacturer – should it gain control of GM Europe – will shed up to 20,000 jobs in Germany alone.

However, Fiat hit back at those claims last Friday with a statement that read: “These comments are entirely unfounded. The Fiat plan is for total employee reductions – which would take place gradually and be distributed throughout Europe – of less than 10,000. The impact for the workforce in Germany, therefore, would be significantly lower than speculated.”

In the US, Chrysler’s emphasis last week was on job preservation under Fiat rule.

Commenting on the change in leadership, Mr Nardelli – the man who deposed LaSorda after Cerberus Capital Management purchased Chrysler in 2007 (and who is now returning to Cerberus as an advisor) – said: “My number one priority has been to preserve Chrysler and the livelihoods of thousands of people who depend on its success.

“With his broad expertise serving on numerous world-class boards and his accomplished business background, Bob (Kidder) will provide the leadership and strategic counsel that will help to create a strong global competitor moving forward.”

Mr Kidder, 64, is a former chairman and CEO of Duracell International and Borden Chemical and currently serves on the boards of Morgan Stanley (as lead director), Schering-Plough Corporation and Microvi Biotech Inc.

He is also chairman and CEO of 3Stone Advisors, an investment firm that focuses on clean-tech companies.

“I am pleased to join Chrysler at a time when Chrysler is poised to launch an exciting new era,” Mr Kidder said. “I am confident that Chrysler will emerge from Chapter 11 a lean and powerful competitor, combining its own rich history of innovation with Fiat’s technology and expertise to invigorate the American car market and to challenge other car companies around the globe.” Chrysler expects to emerge from bankruptcy before the end of next month.

In yet another personnel twist to the tale, GM’s head of Hummer, Saab and Cadillac, Mark McNabb, resigned last week “to pursue other career opportunities”. The former Nissan Motor Co executive had been in job 13 months.

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