Autoblog

Ousted Mercedes-Benz USA boss Lieb fighting dismissal in court

Jeff Sabatini — Tue, 27 Dec 2011 15:31:00 EST

Filed under: Europe, Government/Legal, Hirings/Firings/Layoffs, Mercedes-Benz

Deposed Mercedes-Benz U.S.A. chief Ernst Lieb may be gone, but he won't soon be forgotten. Lieb is suing Benz parent company Daimler for wrongful dismissal, with a German court date scheduled for March, according to Automotive News.

The automaker claims Lieb, 56 improperly spent a six-figure sum on his company-owned home in Mahwah, N.J., making "incomplete, inaccurate and manipulative statements" when questioned about the expenditures in an audit. "None of the accusations are justified," said Lieb's lawyer, according to the report.

The former CEO's counsel reportedly plans to argue that Lieb was "one of dozens" of executives who were "fired unfairly" as part of a sweeping crackdown on ethics violations.

Lieb was terminated in October, and eventually replaced by Steve Cannon earlier this month.

Ousted Mercedes-Benz USA boss Lieb fighting dismissal in court originally appeared on Autoblog on Tue, 27 Dec 2011 15:31:00 EST. Please see our terms for use of feeds.

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Mercedes-Benz USA announces Cannon as new CEO

Chris Shunk — Fri, 16 Dec 2011 18:30:00 EST

Filed under: Hirings/Firings/Layoffs, Mercedes-Benz

Mercedes-Benz USA has named marketing boss Steve Cannon as its new Chief Executive Officer effective January 1. Automotive News reports that Cannon, who has been with MB for 20 years, is only the second American to hold the post in the luxury brand's long history.

Financial boss Herbert Werner had been serving as interim CEO after the departure of MB USA boss Ernst Lieb. Lieb left the company in disgrace after a scandal was uncovered involving improper use of company funds.

According to Automotive News, dealers appear happy with the choice of Cannon. Michael Cantanucci, who runs the Mercedes dealer board here in the States, called the move "a good decision," and added that dealers are "excited and we're pleased."

Cannon, who was a U.S. Army Airborne Ranger before signing on at Mercedes, points out that the company's dealer relations are at a 20-year high, and tells AN that his appointment shows "it wasn't necessary to take someone from the global organization or Stuttgart and parachute them in to run this show."

Mercedes-Benz USA announces Cannon as new CEO originally appeared on Autoblog on Fri, 16 Dec 2011 18:30:00 EST. Please see our terms for use of feeds.

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List of Mulally successors narrowed down to four

Jeremy Korzeniewski — Mon, 28 Nov 2011 14:00:00 EST

Filed under: Hirings/Firings/Layoffs, Ford

How do you replace the man credited by Time Magazine with managing "the biggest business turnaround of the Great Recession?" That's a very good question, and one that the Ford board of directors is grappling with as company CEO Alan Mulally edges closer to retirement age.

At 66, Mulally isn't exactly far past his prime, and Executive Chairman Bill Ford is said to be in no hurry to welcome in a successor. That said, the timing of Mulally's exit from Ford is likely to be a determining factor in the decision to hire his replacement.

Current CFO Lewis Booth, at 63 years of age, could potentially hold the seat at the head of Ford for a few years if Mulally were to retire earlier than expected. If that doesn't happen, Mark Fields, Ford's President of the Americas, is cited as the most likely choice as its next CEO.

There are two other potential candidates, reports Automotive News. Jim Farley, vice president of global marketing, is on the short list, as is Joe Hinrichs, who heads Ford's Asia Pacific and African operations.

Insiders suggest that Ford may choose to keep Alan Mulally on its payroll in some unknown capacity to help mentor his replacement. Such a move could potentially keep both the rank-and-file Ford workers and Wall Street investors satiated.

List of Mulally successors narrowed down to four originally appeared on Autoblog on Mon, 28 Nov 2011 14:00:00 EST. Please see our terms for use of feeds.

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Tata CEO Forster steps down after only 18 months

Eric Loveday — Mon, 12 Sep 2011 07:59:00 EST

Filed under: Hirings/Firings/Layoffs, Jaguar, Land Rover, UK, India, Tata

Tata Motors has announced that its group chief executive officer, Carl-Peter Forster, resigned with immediate effect, only 18 months after joining the company.

Tata, India's leading maker of trucks and buses, and owner of Jaguar and Land Rover, says Forster resigned due to "unavoidable personal circumstances," but will remain a non-executive member of Tata Motors' board. Forster stated:

I deeply regret that my personal circumstances make it difficult for me to continue to perform the challenging duties of managing the thriving global activities of the Tata Motors Group with its main activities in India and the UK and increasingly in additional overseas markets.

Forster's departure comes as Tata Motors continues its lengthy search for a successor to Ratan Tata, who is set to retire soon as chairman of the sprawling conglomerate. Forster joined Tata in February 2010 after leaving Opel, with his focus on turning around the then-struggling Jaguar-Land Rover division. Tata Motors is currently seeking Forster's replacement.

Continue reading Tata CEO Forster steps down after only 18 months

Tata CEO Forster steps down after only 18 months originally appeared on Autoblog on Mon, 12 Sep 2011 07:59:00 EST. Please see our terms for use of feeds.

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Infographic: Wage gap between CEO and employees

Jeremy Korzeniewski — Fri, 19 Aug 2011 14:30:00 EST

Filed under: Earnings/Financials

As you're probably already aware, Ford CEO Alan Mulally earned well over $26 million last year. Fiat and Chrysler head Sergio Marchionne was next in the ranks of highest-paid CEOs among automakers with $17 million in compensation, and Nissan/Renault chief Carlos Ghosn was third at $13 million.

None of this is news, really. We already knew that. But what you may not know is how those figures compare to the income of the average autoworker. According to the infographic you see above (click here to enlarge), the average annual salary earned by autoworkers in America as of February 2010 was $48,000... but that figure varies a good deal, depending on factors such as the company paying the bill and the number of years employed.

For a more complete breakdown of CEO compensation versus the rest of an automakers' employees, check out the full graphic after the jump.

Continue reading Infographic: Wage gap between CEO and employees

Infographic: Wage gap between CEO and employees originally appeared on Autoblog on Fri, 19 Aug 2011 14:30:00 EST. Please see our terms for use of feeds.

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Report: Fiat looking to up Chrysler stake to 46% by June

Chris Shunk — Fri, 15 Apr 2011 09:30:00 EST

Filed under: Government/Legal, Chrysler, Fiat

Fiat has been in a big, fat hurry to increase its stake in Chrysler, as the Italian automaker has managed to increase ownership from 20 percent to 30 percent so far this year. A report out of Automotive News Europe (via Italian newspaper Corriere della Sera) shows that the stakes may raise once again by June of 2011.

From the onset, the first goal for Fiat has been to hit 35 percent ownership by the end of 2011, but sources tell AN that CEO Sergio Marchionne and his team are now aiming for 46 percent this summer. To hit that number, the automaker will need to pay down U.S. and Canadian government debt from the original $7.4 billion to under $4 billion. On Monday, Marchionne reportedly said that Fiat planned to speak with banks in an effort to refinance the loans. Earlier in the year, Marchionne referred to the government loans as "shyster loans," which, though he later apologized, tells us everything we need to know about the CEO's motivation.

As part of that agreement, Fiat has the option to pay down $1.14 billion in debt by the end of 2011, while waiting until next year will effectively raise the rate to $1.37 billion. That translates to a 20-percent interest rate for the year, which is high for a credit card, much less a government loan.

The next step for Fiat is to achieve another five percent ownership in Chrysler by the end of 2011. To do this, the automaker will need to sell a 40+ mile per gallon Dodge (likely a rebadged Fiat) and sell it in the U.S.

[Source: Automotive News - sub. req. | Image: Massimo Pinca/AP]

Report: Fiat looking to up Chrysler stake to 46% by June originally appeared on Autoblog on Fri, 15 Apr 2011 09:30:00 EST. Please see our terms for use of feeds.

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Fiat gets a new chief executive

Noah Joseph — Mon, 20 Sep 2010 08:29:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Fiat

Your eyes doth not deceive you: Fiat has a new CEO. But before we get ahead of ourselves, Sergio Marchionne isn't going anywhere. The Italian-Canadian executive mastermind directing both the Fiat and Chrysler groups is not relinquishing his position. But a number of years ago, he did hand over control of the Fiat brand to a subordinate. That position has changed hands a couple of times since then, and has now been handed over to a new talent.

After years of experience in the industry, having worked for Ford and Toyota, Andrea Formica has been named CEO of the Fiat brand. And in typical Fiat style, he'll also have to juggle another portfolio in the group, directing sales for Fiat, Alfa Romeo and Lancia, as well as Chrysler's operations in Europe.

Vacating the position is Lorenzo Sistino, who moves over to head Fiat's International Operations while also running Fiat Professional, the company's commercial vehicles division. Full announcement in the press release after the jump.

[Source: Fiat]

Continue reading Fiat gets a new chief executive

Fiat gets a new chief executive originally appeared on Autoblog on Mon, 20 Sep 2010 08:29:00 EST. Please see our terms for use of feeds.

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Officially Official: VW of America names Browning as new CEO

Jeff Glucker — Mon, 13 Sep 2010 12:32:00 EST

Filed under: Hirings/Firings/Layoffs, Volkswagen

Yesterday, we reported that Volkswagen was planning to name Jonathan Browning as its new CEO of United States operations. At 11:00 AM today, VW did just that - Browning will officially assume the role on October 1st of this year.

Browning has held many executive sales and marketing positions within the automotive industry. He was recently tasked with managing the national sales team for all of the Volkswagen Group brands. Now, Browning will be a driving force behind the automakers push to become a leading brand in the United States.

VW Group recently invested $1 billion dollars in a new Chattanooga assembly plant and is also planning a large marketing campaign to rally sales around the redesigned Volkswagen Jetta. The target sales goal for 2018 is 200,000 Audi models and 800,000 Volkswagen models - high goals, indeed.

Congratulations to Mr. Browning and the Volkswagen Group.

[Source: Volkswagen]

Continue reading Officially Official: VW of America names Browning as new CEO

Officially Official: VW of America names Browning as new CEO originally appeared on Autoblog on Mon, 13 Sep 2010 12:32:00 EST. Please see our terms for use of feeds.

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Ducati North America seeks new CEO

Devon Brozek — Sat, 17 Jul 2010 09:25:00 EST

Filed under: Performance, Hirings/Firings/Layoffs, Earnings/Financials, Motorcycle, Rumormill, Luxury

Amidst recent rumors, Ducati has officially announced that its CEO of North American operations, Michael Lock, will step down at the end of July to pursue other opportunities.

Since Lock took the reins in North America in late 2003, Ducati has bridged the gap from something of a novelty brand to what is perhaps the most feared and admired European motorcycle brand. Ducati owners may still crave an exclusive, somewhat eccentric image, but the brand has become very mainstream in the U.S. and Canada, competing at the top of several segments and boasting a robust dealer network. With waiting lists for new models and a full apparel collection to further pad the bottom line, we don't see the momentum slowing much in years to come. In the interim, Ducati N.A. will be run by VP of Sales for Ducati Holdings, Christiano Silei. As far as a long-term plan, expect to see a new CEO appointed soon.

And what of Michael Lock? Why would the successful executive leave when he's at the top of his game? Well, we suspect "other opportunities" to involve plenty of cash and a new challenge for the former Ducati captain. Who knows, maybe Triumph hired him back? Hit the break to view the official press release.

[Source: Ducati]

Continue reading Ducati North America seeks new CEO

Ducati North America seeks new CEO originally appeared on Autoblog on Sat, 17 Jul 2010 09:25:00 EST. Please see our terms for use of feeds.

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Report: Chung, Mullaly, Winterkorn named top car company CEOs

Jonathon Ramsey — Wed, 14 Jul 2010 17:32:00 EST

Filed under: Ford, Hyundai, Volkswagen

Automotive News has put together its list of 2010 auto industry all-stars, and taking first place in American, European and Asian CEO categories are Ford CEO Alan Mulally, Volkswagen CEO Dr. Martin Winterkorn, and Hyundai-Kia CEO Chung Mong-koo. Hard to fault the choices, and it shouldn't come as a surprise at all that the same three gentlemen took slots two through four of Motor Trend's list of top 50 auto execs for 2009.

Mulally was cited because his "steadfast plan to turn Ford around is bearing fruit in impressive fashion" and Chung was lauded for having " turned the Hyundai brand into a superpower." Winterkorn, who could have been awarded based on VW's Hulk-like growth, was actually noted for his "Strategy 2018," by which time he plans for the VW group to be selling ten million cars per year. Check this spot in eight years to see if he's still an all-star. For now, though, congrats to all.

[Source: Automotive News - sub. req'd.]

Report: Chung, Mullaly, Winterkorn named top car company CEOs originally appeared on Autoblog on Wed, 14 Jul 2010 17:32:00 EST. Please see our terms for use of feeds.

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Fiat unites Maserati, Abarth, Alfa Romeo under one CEO

Noah Joseph — Wed, 27 Jan 2010 08:00:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Maserati, Alfa Romeo, Fiat

With the unification of Fiat and Chrysler, we're been expecting major changes in the corporate structure of the two automakers and their various brands. Most recently, Lancia chief executive Olivier Francois was named head of the Chrysler division, leading to reports that the two brands - similarly positioned in the sub-luxury premium segment - will be integrated into one unit. Now similar reports place the Abarth, Maserati and Alfa Romeo brands under common leadership.

Let's get ready to play musical chairs for a moment... This news comes with the appointment of Harald Wester as CEO of Alfa Romeo. In his new role, Wester replaces Sergio Cravero, who himself was recently promoted from the brand's communications directorate to serve as a replacement for the departing Luca de Meo who will change to a new role as head of product planning for the entire Fiat Group.

Wester, meanwhile, retains not only his roles as group chief technical officer, but also as CEO of both the Abarth and Maserati brands. As a result, we can expect to see a deeper level of collaboration between these performance-oriented brands within the expanding Fiat empire. Details in the press release after the jump.

[Source: Fiat]

Continue reading Fiat unites Maserati, Abarth, Alfa Romeo under one CEO

Fiat unites Maserati, Abarth, Alfa Romeo under one CEO originally appeared on Autoblog on Wed, 27 Jan 2010 08:00:00 EST. Please see our terms for use of feeds.

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Jaguar-Land Rover CEO David Smith stepping down

Jonathon Ramsey — Tue, 26 Jan 2010 08:58:00 EST

Filed under: Jaguar, Land Rover, UK, Tata

The man installed by Tata to guide the Jaguar/Land Rover ship, David Smith, has left the company. Smith was the head of finance for Ford Europe, and had helped sell Aston Martin to Dave Richards' group before he assisted in the sale of Jaguar to Tata. He has been the CEO since 2008, and just last year helped the company secure a £340 million ($553 million) European Investment Bank loan guarantee. A short statement from the company itself gave no reason for the departure, saying only that Ravi Kant, company director, will take over in the meantime while a successor is found.

[Source: Jaguar/Land Rover, BBC]

Jaguar-Land Rover CEO David Smith stepping down originally appeared on Autoblog on Tue, 26 Jan 2010 08:58:00 EST. Please see our terms for use of feeds.

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REPORT: Marchionne will choose to lead either Chrysler or Fiat within 24 months

Chris Shunk — Wed, 09 Dec 2009 11:01:00 EST

Filed under: Chrysler, Fiat

Sergio Marchionne appears to be very well regarded within the auto industry and his work making Fiat a viable automaker has been pretty remarkable overall. Now Marchionne is charged with saving the beleaguered and product-starved Chrysler while also keeping momentum back home in Italy. That's a big job that Marchionne won't be able to do for long. The dualing CEO reportedly said in a speech at the Peterson Institute for International Economics in Washington that he will decide which company to run within the next 24 months. It appears Marchionne is no Carlos Ghosn, for better or for worse.

Marchionne also gave some pretty stark assessments of the Pentastar, as he reportedly told the audience that Chrysler walked away from bankruptcy a cleaner company but "but we ended up with the same stuff we had." Ouch. Marchionne also reportedly used his time at the Peterson Institute to discuss what he calls the industry's overcapacity problem. He said that while Chrysler has the post-bankruptcy ability to pick and choose when to grow, in Europe, overcapacity results in billions in lost revenue. Germany, for example, hasn't shuttered a plant since before World War II.

So Marchionne is going to give up one of his CEO posts within the next two years. On one hand, it's nice to see that the Fiat/Chrysler CEO is a realist who doesn't want to stretch himself too thin, and at the same time we like the fact that he plans to stay at Chrysler at least until it begins to receive some new products via its partnership with Fiat. Do we think he'll choose Chrysler over Fiat? The Fiat that resides in sunny Italy with brands like Ferrari, Maserati and Alfa Romeo? We wouldn't, but hey, we're not millionaire CEOs, either.

[Source: The Detroit Bureau | Image: AFP/Getty]

REPORT: Marchionne will choose to lead either Chrysler or Fiat within 24 months originally appeared on Autoblog on Wed, 09 Dec 2009 11:01:00 EST. Please see our terms for use of feeds.

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REPORT: Spencer Stuart tasked with finding new GM CEO

Jonathon Ramsey — Tue, 08 Dec 2009 16:20:00 EST

Filed under: Hirings/Firings/Layoffs, GM

Headhunting firm Spencer Stuart is without doubt on the speed-dial lists of bailed-out firms, having placed chairmen, CEOs, Chrysler Group LLC, and board members for AIG, Citigroup Inc., Freddie Mac, Fannie Mae, and GMAC. Then they flew over General Motors so that Ed Whitacre, Jr. could heli-drop in. Now, The Wall Street Journal is reporting that GM has chosen Spencer Stuart to assist it in locating a permanent CEO to take up the position from Whitacre.

GM's list of requirements makes it clear they're looking for someone bionic, having "extensive global, manufacturing and turnaround experience." The new person should also have solid credentials working with Asia, since GM believes it will move more metal over there than in the U.S. next year, and the prospective bigwig doesn't need to come from within the auto industry'sranks.

No national preference has been put forth for the new CEO, only that he or she be "global minded." Perhaps the most important proven attribute they can bring: the ability to restore morale. It's an impressive list, but that's frankly the kind of CEO we would expect GM to require anyway, regardless of its economic and market position. And it does kind of make us wonder if Alan Mulally could simultaneously run two carmakers...

[Source: The Wall Street Journal]

REPORT: Spencer Stuart tasked with finding new GM CEO originally appeared on Autoblog on Tue, 08 Dec 2009 16:20:00 EST. Please see our terms for use of feeds.

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Francois appointment points to more cooperation between Chrysler and Lancia

Noah Joseph — Tue, 06 Oct 2009 17:58:00 EST

Filed under: Hirings/Firings/Layoffs, Marketing/Advertising, Chrysler, Fiat

Amidst the confirmation that chief executive Sergio Marchionne was splitting off the Dodge Ram truck unit into its own division of the Chrysler Group came the announcement of some executive re-shuffles in Auburn Hills. Among them, Lancia CEO Olivier Francois was appointed head of the Chrysler brand. But according to the latest reports, the sharing of a chief executive is only the tip of the North Atlantic iceberg for cooperation between the Chrysler and Lancia.

Long subsisting like it's the Plymouth of the Fiat Group, Lancia lacks a strong product portfolio. But while it isn't expected to join its sister brands in the transatlantic journey to the American market, the sharing and co-development of new products with Chrysler could get the quirky Fiat division back on track.

Among those products that stand to be shared between the two quasi-premium brands are the next-generation models of the Chrysler 300 (which could underpin a replacement for the discontinued Lancia Thesis), Chrysler Sebring, and Lancia Ypsilon hatchback.

Meanwhile, Francois, who joined Fiat in 2005 from his position as a regional manager for Citroën, is emerging as a rising star within both auto groups: his responsibilities now put him in charge of both Chrysler and Lancia, as well as marketing, advertising and branding for no less than nine brands: Fiat, Fiat Professional, Abarth, Alfa Romeo, Lancia, Chrysler, Jeep, Dodge and Ram. If it wasn't clear before, it's now plainly obvious who has replaced Luca de Meo as Marchionne's right hand man.

[Source: Automotive News - subs. req'd]

Francois appointment points to more cooperation between Chrysler and Lancia originally appeared on Autoblog on Tue, 06 Oct 2009 17:58:00 EST. Please see our terms for use of feeds.

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Honda CEO reportedly rules out return to Formula One

Noah Joseph — Thu, 16 Jul 2009 17:58:00 EST

Filed under: Motorsports, Japan, Honda

Things could hardly have played out worse for Honda. It has poured what surely amounted to billions of dollars for years into its Formula One team with little effect. Then it brought in Ross Brawn, only to withdrew its support from the squad, then it sold the entire operation to Brawn while paying out big bucks to avoid an even bigger severance bill. And only then did Brawn turn the F1 team into a winner. That'd be enough to send some automakers scurrying to get back in the game, but not Honda.

The Japanese automaker's new CEO Tokanobu Ito has reportedly completely ruled out the possibility of a return to F1 "even if the economy improves," deriding the series as bereft of relevant development possibilities. Well, there you have it. No word, however, on whether Honda will support the 2010 Japanese Grand Prix at its Suzuka Circuit after Toyota withdrew its Fuji Speedway from the event.

[Source: Autosport | Image: Kazuhiro Nogi/AFP/Getty]

Honda CEO reportedly rules out return to Formula One originally appeared on Autoblog on Thu, 16 Jul 2009 17:58:00 EST. Please see our terms for use of feeds.

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REPORT: Wagoner gets $8.2M severance + $74,030 annually w/benefits... for life

Chris Shunk — Wed, 15 Jul 2009 08:34:00 EST

Filed under: GM, Earnings/Financials

When Rick Wagoner was forced out of his position as the CEO of General Motors last March, he left with a severance plan that included $22 million paid out over the course of a few years, plus a yearly pension. Just a few months later, The Los Angeles Times is reporting that Mr. Wagoner has worked out a deal with his ex-employer that will "only" pay out $8.2 million, plus $74,030 per year for life, along with health and life insurance plans. Wagoner's retirement becomes official on August 1, at which time he can begin reaping the benefits of his golden parachute.

Wagoner's severance, while greatly reduced, is still worth more money than most Americans will earn in their lifetime, and it will doubtlessly prompt some to once again question big payouts to ex-executives at federally bailed out companies. We wonder if now is a bad time to hit up Wagoner for a low interest loan to help us get into a new Camaro...

[Source: The Los Angeles Times | Image: Bill Pugliano/Getty]

REPORT: Wagoner gets $8.2M severance + $74,030 annually w/benefits... for life originally appeared on Autoblog on Wed, 15 Jul 2009 08:34:00 EST. Please see our terms for use of feeds.

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BREAKING: C. Robert Kidder announced as chairman of Chrysler Group LLC

Damon Lavrinc — Wed, 20 May 2009 15:58:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler

Once Chrysler emerges from bankruptcy, the automaker's current CEO Robert Nardelli, be replaced by an appointee selected by the oversight committee (likey Sergio Marchionne) and C. Robert Kidder will become the new Chairman of the (supposedly) revitalized Chrysler.

Chrysler outlines Kidder's extensive history in their release (posted below the fold), including stints as the CEO of Borden Chemical Inc. and Duracell International, along with serving as the lead director on Morgan Stanley's board. Although Kidder holds an M.S. in Industrial Economics from Iowa State University and a B.S. in Industrial Engineering from the University of Michigan, his only contact with the automotive industry that we can glean from the release is his work "with a major OEM client." So his car-cred is in question and that leaves us wondering what kind of Chairman Kidder will be for a company desperately in need of compelling and competitive products. Expect more information about Kidder to be forthcoming.

Continue reading BREAKING: C. Robert Kidder announced as chairman of Chrysler Group LLC

BREAKING: C. Robert Kidder announced as chairman of Chrysler Group LLC originally appeared on Autoblog on Wed, 20 May 2009 15:58:00 EST. Please see our terms for use of feeds.

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BREAKING: Marchionne confirmed as post-bankruptcy Chrysler CEO

Noah Joseph — Thu, 07 May 2009 11:15:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, Fiat

After weeks of speculation, Fiat confirmed today that its CEO, Sergio Marchionne, will assume the same role with Chrysler once it exits bankruptcy. According to statements from the Obama administration, Chrysler could emerge from "surgical bankruptcy" in as little as 30 to 60 days, after which Chrysler's current chief executive Bob Nardelli will step down and Marchionne will step in.

A dual Canadian and Italian citizen, the Ontario-educated Marchionne is credited with turning the Fiat Group around from a money-losing enterprise into one of the largest and most successful automakers in the industry. After taking over the helm at Fiat five years ago, Marchionne said he would need to double its sales to 5.5 million units annually in order to make the company financially viable. His vision for separating Fiat, Lancia and Alfa Romeo out of their parent company and into a new auto group together with Chrysler (and potentially with GM's European and Latin American assets) would make it the second-largest automaker in the world, with 6 million cars produced annually. The bulk of the debts, however, would remain with the shells of their former organizations, leaving the new one unencumbered and free to regroup. There's no further news at this point as to when Chrysler will emerge from its Chapter 11 proceedings, allowing Marchionne to step in, or how the reported Treasury Dept. regulations will affect Marchionne's salary, but we can expect to hear plenty more on this highly-rated executive and his vision for reshaping the auto industry in the very near future.

[Source: The Detroit News | Image: Giuseppe Cacace/Getty]

BREAKING: Marchionne confirmed as post-bankruptcy Chrysler CEO originally appeared on Autoblog on Thu, 07 May 2009 11:15:00 EST. Please see our terms for use of feeds.

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REPORT: Next Chrysler CEO salary capped at $500,000

Noah Joseph — Tue, 05 May 2009 16:58:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Chrysler, Earnings/Financials

The next chief executive of Chrysler will be tasked with bringing the company out of bankruptcy, restructuring into a profitable business, repaying government loans (if and when they do so at all), integrating Fiat technology and retaining jobs wherever possible. Oh, and he or she will have to do it all on no more than $500,000 a year. This according to the latest reports, based on new Treasury Department regulations.

In receiving funds from the $700 billion financial industry bail-out coffers, Chrysler becomes one of the first companies to fall under new regulations outlined by Treasury Secretary Tim Geithner (pictured above) that stipulate chief executives of any firms receiving said funding can't receive compensation exceeding the half-million mark. And not just the chief executive, either, but the top 25 suits in the company. The regulations don't limit the executives from receiving stock options, but with Chrysler's shares being split between Fiat, the UAW and the Canadian and U.S. federal governments, there aren't any shares to go around to offer the cut-rate execs. And to compound things, the executives have to agree to waive the right to sue the government for cutting their wages. The regulations further state that the recipient of the funds (i.e. Chrysler) is barred from owning or leasing private jets, so Fiat executives flying from Turin to Detroit will have to pay their own way. However, the regulations are ambiguous when it comes to payment for second jobs: in other words, who can say if Fiat CEO Sergio Marchionne would be capped at $500k overall if he took the helm at Chrysler, as well?

[Source: Detroit Free Press | Image Source: Win McNamee/Getty]

REPORT: Next Chrysler CEO salary capped at $500,000 originally appeared on Autoblog on Tue, 05 May 2009 16:58:00 EST. Please see our terms for use of feeds.

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