Now that the new Chrysler Corp. has been created by Daimler AG selling a majority stake in the company to Cerberus Capital Management, the next question is who is in charge? In recent weeks, former Chrysler group chief operating officer Wolfgang Bernhard has been quite conspicuous in the halls of Chrysler's Auburn Hills headquarters. However, the announcement made clear that the current Chrysler management team led by Tom LaSorda would stay in place, at least for now. Bernhard will not be part of Chrysler management but will stay with Cerberus. Almost certainly when Bernhard left Volkswagen early this year, his separation agreement included a no-compete clause probably for two years which prohibits him from taking a direct role at Chrysler. What we will probably see is Bernhard acting as a liaison between the equity firm and the carmaker. That probably means LaSorda has about eighteen months to turn things around before Wolfgang steps back in.
[Source: Detroit Free Press]
New KITT Attack Mode revealed at Comic Con
London 2008: Honda OSM concept roadster says, "Cheerio!"
London 2008: Lotus unveils the Evora
2010 Chevy Camaro - Official Details and Images
2010 Chevy Camaro - LIVE from the reveal
In the Autoblog Garage: Aprilia RSV 1000 R
First Drive: Maserati Quattroporte S in Europe
First Drive: 2008 MINI Cooper S JCW
In the Autoblog Garage:2009 Nissan GT-R
North American Exclusive First Drive: Alfa MiTo
Reader Comments (Page 1 of 1)
Tool @ May 14th 2007 1:09PM
Wolfgang Bernhard should be Chrysler Chairman and CEO. Period.
Big mistake to keep Tom LaSorda in place. After all, he was the guy who allowed the sales bank problem to happen.
I'm really shocked that Cerberus has not committed to cleaning house. That is not to say that it won't happen, but they need to clean out the culture of mediocrity.
DJ @ May 14th 2007 1:10PM
What a tangled web we weave. First, Da Fuerher Schrempp dispatches Wolfgang Bernhard from DCX because knows WB knows more about making cars than he does and Herr Schrempp doesn't like to share to share the limelight with anyone. WB lands in of all places, Wolfsburg, to run VW. While there, he begins discussions regarding product sharing with Chrysler, which leads to a VW badged, Chrysler built minivan, due out this fall. Reich Marshall Piech decides he too has an EGO too big for both of them to share a room, dispatches WB, collared with a two year non-compete. In the meantime, Porsche decides to buy VW and Wolf decides to buy Chrysler. So in the end, VW doesn't want to be owned by Porsche, but they do want their minivan. Wolf wants to own Chrysler, but doesn't wnat to be constrained by the non-compete. SO, where does this web spin to next???
jw @ May 14th 2007 2:26PM
TOOL. YOU HAVE IT RIGHT!!! GET RID OF ALL THOSE BUMBS..THEY ARE CROOKS THAT DON'T GIVE A SHIT ABOUT ANYTHING EXCEPT KEEPING THERE JOBS.HOW MANY DEALERS HAVE THIS AND PAST MANAGEMENT PUT OUT OF BUSINESS BUY SIMPLY SHIPPING AUTOS AND THEN SAYING WERE HERE TO HELP YOU...YA RIGHT..DON'T TRUST ANY OF THEM...TIME TO CLEAN HOUSE!!!!!!!!!!!!!!!!!
MH @ May 14th 2007 4:08PM
#2
Well written. I agree completely except for one thing.
VW DOES want to be owned by Porsche. Piech is Ferdinand Porsche's grandson and the architect behind this whole thing.
VW beeing owned by Porsche/Piech controlled Porsche AG is the insurance VW needs to be able to work in peace and continue wielding their influence undisturbed.
Barney @ May 14th 2007 4:45PM
In any takeover, management usually remains for a couple of years as a figurehead only. Many times their contract requires the new owners to keep them on board. Cerberus Capital Management is not into making cars but to make money on investments. That company will be the one to decide how the company is managed.
Mike G @ May 14th 2007 5:43PM
Wow, isn't Wolfgang just dreamy? Yummy. I'll have some wolf gang, burn hard.
Don @ May 14th 2007 6:17PM
Oh, PLEASE put Bernhard back in charge.
ericmvest @ May 17th 2007 11:58AM
Delete sick comment # 6.
Osiris @ Jul 1st 2007 12:51PM
Leaving LaSorda in charge is a major mistake. Tom obviously knows that his time is limited and, to those of us employed at Chrysler, appears to be following a scorched earth policy. As the German High Seas Fleet did at Scapa Flow, LaSorda will leave nothing of value for the new owners.