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Italian auto major Fiat SpA and partners have completed acquisition of most of Chrysler LLC's assets, completing an Obama administration-directed fast-track reorganisation for Chrysler. The merger will create the world's sixth-largest carmaker in which Fiat will own 20 per cent. The new company, known as Chrysler Group LLC, will begin operations immediately, the companies said in a statement. Other parts of Chrysler will remain in bankruptcy to be sold or closed.  Fiat chief executive Sergio Marchionne will also be CEO of Chrysler. Chrysler's former CEO Bob Nardelli is expected to leave the company once the sale is completed.
The combined company would have sales of 4.5 million vehicles globally, ranking just behind Ford Motor Co based on 2008 results. Marchionne is pushing for consolidation in the auto industry because he expects only six global producers to survive the first global recession since World War II. The new company announced an organisational restructuring to focus on the Chrysler, Jeep, Dodge and Mopar brands. The new leaner, flatter structure is intended to restore brand promise and dealer confidence. All appointments are effective immediately. "I personally feel privileged to have the opportunity to lead the new Chrysler and to work with senior management to build this company and our great brands into all we know they can and should be," said Sergio Marchionne, who today was named chief executive officer of Chrysler Group LLC. "That effort starts with leadership." Chrysler Group's new organisation is based on a global brand-focused structure comprised of the Chrysler, Jeep, Dodge and Mopar brands, each with full profit and loss accountability. Common commercial, industrial and corporate functions have been put in place to support the development, manufacture, distribution and sale of Chrysler, Jeep and Dodge products and Mopar parts by the brand organisations. ''The new company's leadership structure has been developed to rebuild and grow the four iconic Chrysler brands," said Marchionne. "With a flattened organisation designed to give leaders broad spans of control, we are able to increase the speed of decision-making and improve communication flow, ultimately bringing Chrysler Group management and employees closer to our customers." To assist the new company in the transition, Jim Press is appointed deputy CEO and special advisor, reporting to Marchionne. In this position, Press will be instrumental in the restructuring of the Chrysler Group LLC. Press served most recently as Chrysler LLC vice chairman and president. "The focus of the Brand organization is to rebuild and grow the company's four brands, beginning with their strong heritage. The structure is designed to focus on external competition, avoiding product overlap while maintaining the highest possible level of industrial optimization. The new company will align its networks with the brand positions, to restore brand promise and dealer confidence." Marchionne added. Peter Fong is appointed president and chief executive officer, Chrysler brand, with full profit and loss responsibility for the Chrysler product portfolio. Fong will be the lead executive for the sales organisation with enterprise-wide responsibility. He served most recently as the director of the Mid-Atlantic Business Center. Michael Manley is appointed president and chief executive, Jeep brand, with full profit and loss responsibility for the Jeep product portfolio. Manley will also have enterprise-wide responsibility for the product planning organisation with responsibility for coordinating the product plan and volume requirements of the Chrysler, Jeep and Dodge brand functions. Michael Accavitti is appointed president and chief executive, Dodge brand, with full profit and loss responsibility for the Dodge product portfolio. Accavitti will also have enterprise-wide responsibility for the marketing organisation with responsibility to coordinate worldwide marketing strategies, brand development and advertising for the Chrysler, Jeep and Dodge brands. Pietro Gorlier is appointed president and chief executive of Mopar Service and Parts and customer services, with full profit and loss responsibility for the Mopar product portfolio and Service & Parts operations as well as Chrysler's Customer Service operations. Joe ChamaSrour will continue to lead the new company's operations in Mexico as president and CEO, Chrysler de Mexico. Reid Bigland will continue to lead the new company's operations in Canada as president and CEO, Chrysler Canada. "As we begin the process of redesigning the new Chrysler and moving toward our new place in the American - and global - automotive industry, I would like to take the opportunity to thank the men and women of the company for their many contributions," Marchionne said. "Chrysler has been through a great deal of hardship and uncertainty over the recent past and I want to recognize their commitment." Under the terms approved by the US Bankruptcy Court in New York and various regulatory and antitrust regulators, the company formerly known as Chrysler LLC today formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC, the companies said. In addition to Marchionne, Chrysler Group LLC will be managed by a nine-member board of directors, consisting of three directors to be appointed by Fiat, four directors to be appointed by the US government, one director to be appointed by the Canadian government and one director to be appointed by the United Auto Workers' Retiree Medical Benefits Trust. The board is expected to name C Robert Kidder as chairman. The process of determining additional board members is continuing and updates will be announced as appropriate.
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