likely will get a new chief executive and board appointed by Italy's
and the U. S. government if Chrysler and Fiat eventually form an alliance, Chrysler's current CEO Bob Nardelli told employees in a letter, a report says.
Nardelli said a new board will be appointed by the federal government and Fiat once a deal is completed. The majority of the directors will be independent, the
Wall Street Journal
reports, citing a letter obtained by
Dow Jones Newswires
"The majority of the directors will be independent (not employees of Chrysler or Fiat). The board will have the responsibility to appoint a chairman. The board also will select a CEO with Fiat's concurrence," Nardelli said in the letter, the newspaper reports.
Chrysler has received $4 billion of loans from the federal government. The U.S. automaker has to ink an alliance deal with Fiat by April 30 to get more government aid. Without further help, Chrysler likely would be auctioned off in pieces under bankruptcy court supervision.
Nardelli's comments clarify speculation on who will control Chrysler if a merger deal with Fiat is completed and what role Nardelli might play in that new company, the
Fiat's CEO Sergio Marchionne signaled earlier this week that he could serve as Chrysler's CEO if an alliance is formed between the two automakers. But he also said Fiat would walk away from the proposed tie-up unless Chrysler's unions agree to major cost cuts.
Nardelli was named CEO of Chrysler by private equity firm Cerberus Capital, which acquired Chrysler in 2007. Cerberus is expected to give up all or most of its equity in Chrysler under its reorganization, which opens the door for Fiat to name new management, the
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