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.