Ex-Home Depot Boss to Lead New Chrysler

Chrysler chairman and CEO Bob Nardelli, right, standing with vice chairman and president Tom LaSorda, is introduced to the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. (AP Photo/Carlos Osorio) (Carlos Osorio - AP)

AUBURN HILLS, Mich. -- Chrysler got a taste of its new owner's swift and decisive style Monday as its chief executive was demoted and the former head of Home Depot was tapped to lead the automaker through a major restructuring.

Bob Nardelli, who left The Home Depot Inc. in January after a shareholder rebellion over his outsized pay, was named chairman and chief executive of Chrysler LLC, replacing Tom LaSorda, who is taking the No. 2 slot. The changes came just three days after the private equity firm Cerberus Capital Management LP acquired a majority stake in Chrysler.

"The new Chrysler has the opportunity to prove that the private business model can thrive in this industry," Nardelli said. "We have an opportunity to really make a significant change in the auto industry."

LaSorda said Nardelli is a strong manager who has helped companies grow and he is happy to be working with him.

"He's always been a winner, every business," LaSorda said. "Leave the egos at the door. Let's turn around this company."

It marks the second time in less than a year that an auto-industry outsider has come to the rescue of one of Detroit's struggling automakers. Ford Motor Co. named former Boeing Co. executive Alan Mulally as its president and chief executive in September.

Aaron Bragman, an auto industry analyst with the consulting firm Global Insight, said that Detroit needs outside help as it tries to reverse its fortunes. Last month, foreign brands captured more than 50 percent of the U.S. market share for the first time ever.

"Being an outsider in the Detroit world is not really so much a difficulty as it was before as we have seen the Detroit model is in trouble," Bragman said. "This may be the time for fresh eyes."

But Bragman said he's concerned because Nardelli doesn't have product experience, and the most important part of Chrysler's restructuring will be making cars that consumers want to buy.

"Who has become the top product guy at Chrysler? Where is the product guru we had all expected to see?" Bragman said.

Nardelli said he's simply there to offer his expertise to Chrysler as it proceeds with its restructuring plan. Nardelli said he was impressed with the vision and specifics in that plan, which includes cuts of 13,000 hourly and salaried jobs in the U.S. and Canada by 2009.

"It's clear to me that Chrysler has an experienced and talented team," he said. "I'm confident that we'll continue the momentum of Chrysler's recovery.