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Ailing Chrysler appoints new boss | Ailing Chrysler appoints new boss |
(40 minutes later) | |
US car maker Chrysler has chosen Bob Nardelli, the former boss of DIY store Home Depot, to lead the firm. | US car maker Chrysler has chosen Bob Nardelli, the former boss of DIY store Home Depot, to lead the firm. |
The move comes days after private equity firm Cerberus bought 80.1% of Chrysler for 7.4bn euros ($10.1bn; £5bn) from parent company Daimler. | The move comes days after private equity firm Cerberus bought 80.1% of Chrysler for 7.4bn euros ($10.1bn; £5bn) from parent company Daimler. |
Mr Nardelli will act as both chief executive and chairman, while current chief executive Tom LaSorda is to be vice chairman and president. | Mr Nardelli will act as both chief executive and chairman, while current chief executive Tom LaSorda is to be vice chairman and president. |
The new head said "the momentum of Chrysler's recovery" would continue. | The new head said "the momentum of Chrysler's recovery" would continue. |
'Knowledge' | 'Knowledge' |
Chrysler - like other US car firms - has faced increasingly tough competition from Japanese firms, that have developed smaller, more fuel efficient models. | Chrysler - like other US car firms - has faced increasingly tough competition from Japanese firms, that have developed smaller, more fuel efficient models. |
The appointment comes as part of a wider reorganisation plan that is set to reduce the workforce by 13,000 in the US and Canada by 2009. | The appointment comes as part of a wider reorganisation plan that is set to reduce the workforce by 13,000 in the US and Canada by 2009. |
"Bob has a proven track record of success and an unwavering focus on performance, and brings deep operational experience and a broad industry background to Chrysler," said Mr LaSorda. | "Bob has a proven track record of success and an unwavering focus on performance, and brings deep operational experience and a broad industry background to Chrysler," said Mr LaSorda. |
"His background in operations will provide valuable knowledge as we continue Chrysler's turnaround," he added. | "His background in operations will provide valuable knowledge as we continue Chrysler's turnaround," he added. |
During Mr Nardelli's time at Home Depot, the firm expanded rapidly overseas and saw profits rise, although market share at home in the US slipped. | |
But Mr Nardelli ran into criticism for the size of his pay - about $225m a year by the end of his tenure - and for appearing high-handed when shareholders wanted to question him about it, leading to a sharp fall in the company's share price. | |
A huge severance package negotiated when he left the company in January added to the furore over executive pay. | |
Chrysler is currently in talks with the United Auto Workers Union (UAW), over pay and benefits for its staff. | Chrysler is currently in talks with the United Auto Workers Union (UAW), over pay and benefits for its staff. |
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