Chrysler Bankruptcy Plan Would Replace CEO With Fiat Management

Washington Post:

Chrysler chief executive Robert Nardelli would be replaced by the management of Italian automaker Fiat under a bankruptcy plan that the United States is preparing for the storied automaker, sources familiar with the matter said.

While the government is holding out hope that the bankruptcy could be averted at the 11th hour, the administration has detailed plans in which the ownership of Chrysler would be dramatically reordered and the company would receive billions more in aid from the United States and Canada, where the company has substantial operations, industry sources said.

Read the whole story: Washington Post

Comments

[tiotom77]

Just flush it before we get all plugged up!

[TrooAmerican]

I dont know if picking on nardelli for any of this is warranted.
In 2007 when he came on board, "A company official familiar with his agreement said Nardelli would make $1 a year with further compensation based on performance. The official spoke on condition of anonymity because Nardelli’s agreement isn’t public."

This was also stated last year in the Meetings before congress, so since Chrysler is tanking, im not sure hes been paid a dime over $1.

And since he's been there, Chrysler has been on a push to produce Electric or Hybrid vehicles and increased MPG.
And thats what people have been asking for, so what would anyone else do different?

[BobsNotWorking]

It makes me wonder where my old Barracuda is resting today.

[dinglebe]

If FIAT takes over Chrysler, Nardelli is gone regardless, even though his last name does end in a vowel. Maybe he can go back to Home Depot and sell sandpaper.

[quindy]

It looks like all these big shot CEOs are recycled among different banks and companies. They run one company into ground than they get paid even more to do the same to another one. The bonuses were to retain the 'talent'. Does this make any sense to anyone?

[Lane4411]

Nardelli should not get a dime, upon departure. Carl Icahn has written a good piece on executive compensation @ icahnreportdotcom.

Nardelli=overpaid underperformed

[climatebabes]

So what? Again, it's the Entitlement syndrome.http://www.youtube.com/watch?v=N0hPVJts2aM

[planetjeffy]

I heard Chrysler will be filing BK today, with Obama making the announcement.

[totalliberal]

I had MoPar cars all through the seventies. The thought of "Fiat" taking them over is almost laughable.
Fiats with Hemi's. I can see them at NASCAR races now. :-)

[netzwerg]

At least FIAT is able to build modern engines with more than 100hp per liter.
Their Ferrari and Maserati cars arent bad either.

[planetjeffy]

Big cars with
Big engines is the
Big reason American car companies are in
Big trouble.

The exact same thing happened in the 70's. They never learn, do they?

[totalliberal]

I agree. But I loved them while they lasted.

[DMEEPhD]

Have you ever owned a Fiat? Alfa Romeo? Maserati? Ferrari? No? Well I'd stack up any Ferrari and most Alfas against that big, heavy, poor handling Mopar any day of the week, and twice on Sunday.

[Solex]

Excuse me, they build the fastest production cars on the planet that have won races greater than that of what goes on at NASCAR-compared to that, what NASCAR is, is just mediocre drek.

And you can stop praising HEMI's to the sky-we know what they can do, okay?

[loki]

wonder if the board members can make him CEO for life like BofA.

[MuchMadness]

Public perception is very important in shaping public policy. The big banks that received TARP money are going along with the government's plan to help Chrysler. The hedge funds are resisting. If the public starts seeing banks as worthy of government assistance but sees hedge funds as greedy and selfish, congress may be willing to nationalize some of the zombie banks and increase the regulations on hedge funds.

[totalliberal]

Hedge funds will be history within a few years. Like the "Bucket Shops" after the 29 crash.

[bbcnews]

http://bbc.slinkset.com/

[Bettysdad]

Let's see.

Nardelli was kicked out of Home Depot, which he ruined.

Now, he's getting booted from Chrysler, which he can't do anything with.

I guess next he'll be running another business he knows absolutely nothing about, like Taco Bell.

[quindy]

Except that in corporate world the more you fail the better they pay you.

[notAMoron]

If at first you don't succeed; fail, fail again.

[dinglebe]

I heard he was going to Circuit City. Oh, wait a minute, they managed to disappear without him. Probably it will be K-Mart then or Bon-Ton.

[SimJack]

What I don't get is why do people support a company as shareholders and/or customers when neither group is being served by company management? Sell shares and/or take your business elsewhere, after all, no one is holding a gun to anyone's head unless we're missing another huge NRA coverup thanks to the impotent/irrelevant MSM media cycle.

[planetjeffy]

Chrysler is not a public company.. Benz sold them to the private equity firm Cerberus. There are no shareholders who need to dump their worthless stock. Also, since their sales have dropped by half, their customers are not supporting them. There is this thing called the google, where you can look things up before commenting on them.

[blimie]

Why do they oust the CEO of an American auto company but keep the CEO of bank of America.

[planetjeffy]

They just removed him as chairman. He will lose his CEO job next.