Autoblog

Immediately following the sale of Chrysler to Cerberus, people began speculating on what role former Chrysler exec Wolfgang Bernhard would take up in the newly minted Chrysler Corp. Even we jumped on the bandwagon and suggested Bernhard, who had been hired on by Cerberus to advise the sale, would be a likely replacement for Tom LaSorda if the automaker's current CEO couldn't turn around the company's fortune. The Wall Street Journal is reporting, however, that Bernhard will act as a high-level advisor and report directly to Cerberus founder Stephen Feinberg.

The interesting thing is that Bernhard has been present at nearly every meeting since the acquisition was announced. He currently has an office on the executive floor of Chrysler's Auburn Hills headquarters and has been seen making the rounds, even stopping by the design studio to point out what he likes and dislikes in future designs.

Cerberus makes it clear, however, that Bernhard is not part of the Chrysler executive team, which begs the question, why is he there? It seems to us that Bernhard's considerable talent in having an eye for good product and dealing with the unions will be extremely valuable to LaSorda and his team while they attempt to bring Chrysler back to profitability. At the same time, Bernhard's role also comes off as a strategy by Cerberus to keep the Chrysler execs, specifically LaSorda, focused in their task. Should they fail, Bernhard won't have to move his desk far to take over the CEO role. Hopefully it doesn't come to that, and the two execs will form a relationship similar to the one used effectively by GM CEO Rick Wagoner and his product man, Bob Lutz.

[Source: Wall Street Journal via Motor Authority]

click here for high-res version

It's already been made known that Cerberus Capital Management CEO Stephen Feinberg has already made public that he regrets naming his private equity firm after the mythological three-headed dog that guards the gates of Hades. We say, why? Embrace your name and figure out how to use it to your advantage. One Autoblog reader agrees with us, and has created this photoshopped homage to Chrysler Corp.'s new owner called the 300 Cerberus Edition.

The Chrysler 300 has already earned an itimidating reputation, being used as transportation for the Mafia and Secret Service alike in the movies and on television. What could make Chrysler's baby Bentley more terrifying than a proper Cerberus hood ornament in shiny chrome? We think it suits the car and would demand the horn's single pitch be replaced with dog barking sounds.

You didn't want to cross paths with Canadian Auto Workers President Buzz Hargrove on Monday after he found out that Chrysler had been sold to the private equity firm Cerberus Capital Management. The CAW prez was absolutely livid, pissed even, that the CAW was never consulted, not even informally, about the deal.

Well, Chrysler Corp. CEO Tom LaSorda and Cerberus CEO Stephen Feinberg met with Hargrove today to smooth things over. They guaranteed Hargrove in writing that no Canadian auto worker jobs would be lost as a result of the sale. We think "as a result of the sale" is the key phrase in that sentence, as there are plenty of other reasons one could imagine for reducing a workforce: slow sales, high material costs, etc.

Nevertheless, it appears Cerberus isn't planning to come in and dramatically reduce Chrysler's CAW or UAW workforces. Hargrove sounded particularly pleased that Feinberg seemed to know what he was talking about and expressed his company was in it for the long haul.

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

The newly minted Chrysler Corp. held its first press conference today and carryover CEO Tom LaSorda made it clear that all of Chrysler's brands will be kept together after the sale to Cerberus Capital Management goes through. Many have been wondering if Cerberus would pull an Edward Lewis à la Pretty Woman and break up the automaker, selling off its pieces for profit. LaSorda says that won't happen, and in addition his company and Daimler AG will continue to work together in areas such as hybrid technology and purchasing. One would also hope that work done to bring a small B-class car to Chrysler's product portfolio from Chinese automaker Chery is also intact.

LaSorda also said that the purchase will not be followed by more job cuts than were already planned. One job cut we speculate might be considered is LaSorda's own position as CEO of Chrysler Corp. We suspect he'll be given a year or two to improve Chrysler's standing, but ex-Chrysler wünderboy Wolfgang Bernhard is waiting unemployed in the wings. It's likely Bernhard couldn't be named CEO of Chrysler Corp. anyway until his noncompete clause with VW/Audi runs its course. Until that time, you can bet LaSorda will be working to prove his worth to the new suits in town from Cerberus.

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