Chrysler's LaSorda Will Retire; Nardelli Returns to Cerberus
By Michelle Krebs April 30, 2009
By Michelle Krebs
AUBURN HILLS, Mich. -- Former Chrysler CEO Tom LaSorda, most recently vice chairman and president, said Thursday in a conference call that he will retire. He gave no effective date for his retirement but said he will not stick around through Chrysler's Chapter 11 bankruptcy.
Current Chrysler CEO Robert Nardelli said he, too, would be leaving Chrysler after it emerges from bankruptcy to return as an advisor to private equity firm Cerberus Capital Management, which owned Chrysler before Thursday's deal with Italy's Fiat was announced.
Chrysler President and Vice Chairman Jim Press said he has had no discussions regarding his employment status.
The agreement to merge Chrysler and Fiat calls for a completely new, nine-member board for Chrysler that Nardelli said will be established over the next several weeks. That board will include six individuals appointed by the U.S. Treasury Department and three will be from Fiat including a Fiat employee. Once board members are selected, that board will name a chairman and will select a CEO in concurrence with Fiat.
LaSorda: Bringing Fiat Into The Fold
LaSorda deserves much of the credit for bringing Fiat and Chrysler together. On March 12, 2008, LaSorda began discussions with Fiat and specifically CEO Sergio Marchionne when Chrysler sold its Tritech engine plant in Brazil to Fiat. By last fall, the two companies were looking at potential joint projects.
Not surprisingly, Marchionne and LaSorda hit it off. LaSorda, who comes from a long line of union activitists and was himself a union member, was born in Windsor, Ontario, across the river from Detroit. Marchionne went to college at the University of Windsor and started his career in Canada. Marchionne has dual citizenship with Canada and Italy.
LaSorda revealed Thursday that Marchionne asked him to to stay on at Chrysler. However, LaSorda told him he made a decision earlier to retire now. "After 32 years in the auto industry, it's time to get to know my wife and kids again," he told reporters.
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