Industry outsider is new Chrysler CEO

AUBURN HILLS, Mich. (AP) — Chrysler began its new life as a private company on Monday with an auto-industry outsider taking the wheel.

Bob Nardelli, who left The Home Depot Inc. in January after a shareholder rebellion over his outsized pay, was named to head the company, replacing Tom LaSorda, who is taking the No. 2 slot.

Nardelli and LaSorda shared a handshake and posed for pictures during a celebratory event at Chrysler’s headquarters in Auburn Hills.

“We’ll move forward with speed and a renewed focus on meeting the needs of our customers,” said Nardelli, chairman and chief executive.

LaSorda said Nardelli is a strong manager who has helped companies grow, and he is happy to be working with him.

“Leave the egos at the door. Let’s turn around this company,” LaSorda said.

Contract talks

Some wondered what effect Nardelli’s hiring would have on ongoing contract talks with the United Auto Workers. Nardelli said he already has had a two-hour meeting with union President Ron Gettelfinger. LaSorda, Chrysler LLC’s newly named president and vice chairman, still will be at the forefront of “what could be a landmark negotiating period” not only for Chrysler, but for the auto industry, Nardelli said.

Like other U.S. auto companies, Chrysler has been struggling to make a profit while sales were falling and pension and retiree health costs were rising.

Chrysler made $1.8 billion in 2005 but lost $618 million in 2006 and $1.98 billion before interest and taxes in the first quarter of this year. DaimlerChrysler AG didn’t report second-quarter earnings for Chrysler because of its impending sale to Cerberus Capital Management LP.

The automakers, whose labor cost per vehicle is much higher than their Japanese competitors, are emphasizing that workers need to be more flexible if the companies are to survive. Gettelfinger has said that the union is not in the mood for compromise.

Other decisions

Chrysler also said Monday that following a nine-year hiatus, the Pentastar is coming back as the corporate mark for the company. First used as a logo in 1962, the five-pointed star is returning with a three-dimensional update. The symbol will be used on buildings, signs and corporate stationery but not on vehicles or in dealerships, LaSorda said.

Former Chrysler executive Wolfgang Bernhard, a senior adviser to Cerberus, had been widely expected to be named chairman. He was offered a position with the company but elected not to accept it.

On Friday, DaimlerChrysler transferred an 80.1 percent stake in Chrysler to New York-based Cerberus, one of the world’s largest private equity companies, in a $7.4 billion deal. The German automaker, which is to be renamed Daimler AG, retained a 19.9 percent interest in Chrysler.