More details on the proposed Chrysler-Fiat alliance are emerging as we near the government’s imposed April 30th deadline, with the latest news suggesting Chrysler will give up control of its board and senior leadership if a deal is hammered out.
According to an internal memo penned by Chrysler CEO Bob Nardelli and obtained by Reuters, if Chrysler does ink an alliance with Fiat, the United States government and Fiat would appoint new members to Chrysler’s board, with the majority not associated with either automaker. That new board would then be tasked with filling the company’s top positions.
“The board will have the responsibility to appoint a chairman,” Nardelli’s memo said. “The board also will select a CEO with Fiat’s concurrence.”
That means Nardelli, who has been head of Chrysler since 2007, could be out of a job if the deal goes through. Fiat’s CEO, Sergio Marchionne, has already been tipped as a frontrunner of the chief executive of the new Chrysler.
However, Chrysler must get unions in Canada and the U.S. to agree to further concessions before any deals can be made, so Chrysler’s top positions are at least safe for the time being.
