2013 Audi A3

Report: Fiat picks 3 directors for restructured Chrysler

 
1 756 views May 21, 2009

One of the directors will be Fiat CEO Sergio Marchionne who will be in charge of the day-to-day running of the carmaker

One of the directors will be Fiat CEO Sergio Marchionne who will be in charge of the day-to-day running of the carmaker

Enlarge Photo
Only yesterday it was announced that former Chairman of Borden Chemical and of Duracell International, Robert Kidder, would preside over a restructured Chrysler as its new CEO, but already reports have emerged claiming Fiat has appointed three new directors for the struggling carmaker. In the lead up to the announcement, rumors were rife that Fiat CEO Sergio Marchionne would be appointed as Chrysler’s chief but now it appears that he will sit on the board of a newly formed Fiat-Chrysler entity.

Joining Marchionne will be Fiat Powertrain Technologies CEO Alfredo Altavilla, as well as the former vice chairman of Exxon Mobil, Lucio Noto. To further complicate matters, inside sources have revealed to Automotive News that Marchionne will in fact be in charge of day-to-day running of the carmaker, while Kidder will be responsible for protecting U.S. Treasury interests.

Potentially standing in the way of the three respective appointments is the complex ownership situation affecting Chrysler, with debt holders and the UAW involved in difficult negotiations on how to administer the restructured company.

Fiat will initially hold a 20% ownership stake in Chrysler but has the right to increase its ownership stake by an additional 15% in three increments as it meets the following criteria: 5% for bringing a 40mpg vehicle platform to Chrysler to be produced in the U.S.; 5% for providing a fuel-efficient engine family to be produced in the U.S. for use in Chrysler vehicles; and 5% for providing Chrysler access to its vast global distribution network to facilitate the export of Chrysler vehicles. With the full 35%, we could easily see more Fiat execs make their way onto the board of the restructured Chrysler.



Tags:
Posted in:
 
Contribute
Send us a tip Comment Contact the editor
Follow Us

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comment (1)

  1. By  traubensilberkerze Posted: 1/10/2010 9:52pm PST

    According to the Detroit News the UAW will not have a majority of votes on the board of directors even though they will own 55% of the equity. We will probably know who will be on the board by Friday evening.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Connect with Facebook

Motor Authority. Now with your friends.

Discover stories your friends read.
Share stories more easily.
You control what you share.
Learn more

Research New Cars

Go!


More from High Gear Media

 
 
MotorAuthority
  • Follow Us
  • Twiiter
  • Facebook
 
 
© 2011 MotorAuthority. All Rights Reserved. MotorAuthority is published by High Gear Media. Stock photography by Homestar, LLC. Send us feedback.