Chrysler names C. Robert Kidder as Chairman of Chrysler LLC

Bob "The Builder" Nardelli will be stepping down from his post as Chairman of Chrysler LLC when a new leaner Chrysler emerges. We won't be too critical of Mr. Nardelli in the fact that he really didn't grow Chrysler all that much, as that would take an entire blog all to itself.

Rather we'll focus on the new Chairman of Chrysler LLC, C. Robert Kidder formerly of the Borden Chemical Inc. and Duracell Batteries. Mr. Kidder has a very impressive resume and will be a welcome face to the new Detroit Michigan when its all said and done.

Source: Chrysler LLC

Press Release:

C. Robert Kidder to Become Chairman of Chrysler Group LLC

Auburn Hills, Mich., May 20, 2009 -

Chrysler LLC today announced that C. Robert Kidder, former Chairman of Borden Chemical Inc. and of Duracell International Inc., will become Chairman of Chrysler Group LLC, once it completes its acquisition of the operating assets of Chrysler LLC and completes a global alliance with Fiat SpA. He will succeed Robert L. Nardelli.

"We are most fortunate that Bob Kidder will lead the new company through its transformation," said Nardelli. "My number one priority has been to preserve Chrysler and the livelihoods of thousands of people who depend on its success. With his broad expertise serving on numerous world-class boards and his accomplished business background, Bob will provide the leadership and strategic counsel that will help to create a strong global competitor moving forward." With more than 40 years of experience, Kidder currently serves on the boards of Morgan Stanley, where he is the lead director, Schering-Plough Corporation, and Microvi Biotech Inc. He previously has served as Chairman and Chief Executive Officer of both Duracell International Inc. and Borden Chemical Inc. and as director of such companies as Electronic Data Systems Corporation and General Signal Corporation. During his tenure with McKinsey and Co. Inc., Bob worked with a major OEM client in the automotive industry. Bob currently is Chairman and CEO of 3Stone Advisors LLC, an investment firm that focuses on clean-tech companies. He holds an M.S., Industrial Economics from Iowa State University and a B.S., Industrial Engineering from the University of Michigan. He resides with his family in Columbus, Ohio.

“I am pleased to join Chrysler at a time when Chrysler is poised to launch an exciting new era,” said Kidder. "I am confident that Chrysler will emerge from Chapter 11 a lean and powerful competitor, combining its own rich history of innovation with Fiat's technology and expertise to invigorate the American car market and to challenge other car companies around the globe." Chrysler LLC announced on April 30, 2009, that, as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it had reached an agreement in principle to establish a global strategic alliance with Fiat to form a vibrant new company. On the same day, Chrysler LLC and 24 of its wholly-owned U.S. subsidiaries also filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York. Chrysler also filed a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler's principal assets to the new company. The benefit of this type of filing is speed. It will allow a leaner new company to emerge in less than 60 days from the time of filing, well positioned for long-term viability.

Nardelli, Chrysler's Chairman and CEO since August 2007, announced on April 30 his plan to leave the company following the completion of the transactions. He will return to Cerberus Capital Management LP as an advisor. He said that it was "an appropriate time to let others take the lead in the transformation of Chrysler with Fiat, and I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance." As stated in the terms of agreement, upon successful completion of the alliance, a board of directors for the new company will be appointed. The majority of the directors will be independent (not employees of Chrysler or Fiat). The board will select a CEO with Fiat's concurrence. A complete biography of C. Robert Kidder is available at: http://www.media.chrysler.com/.

Chrysler to close 789 dealers.

In compliance with bankruptcy protocol, Chrysler LLC is exercising the option to close 789 Chrysler, Dodge, and Jeep dealers across the United States. This is just one of the many steps being taken to return Chrysler to profitability when they emerge from bankruptcy proceedings and the new aliance with Fiat.

44% of the dealers affected have dual brands, meaning Chysler & Dodge, Dodge & Chevrolet etc. So some dealers will only loose one brand. But one of the key alignments is to align the dealers with the expected annual sales numbers of 12 to 14 million units per year. So you will see a Dodge dealer, that may take on Chrysler and Jeep in the near future.

Jim Press, Co-President of Chrysler LLC states that "Chrysler is open for business". And assures Chrysler customers that they will still be able to purchase cars, parts, and have their Chrysler products serviced for many years to come.

This raises the question of what will happen to the current inventory of Chrysler vehicles when the 789 dealers close. There is currently 400+ thousand Chrysler, Dodge & Jeep vehicles spread across the 789 dealers. The cars will be taken back by Chrysler and redistributed to the remaining dealers. This is due to Chrysler's decission to not produce any more vehicles during the bankruptcy process. So dealers that will be taking on new franchises will have a supply of cars to pick from.

Source: Chrysler

PRESS RELEASE:

Chrysler LLC Files Papers to Retain Majority of U.S. Dealer Network as Part of Company's Sales ProcessAuburn Hills, Mich., May 14, 2009 - Chrysler LLC today filed a motion with the U.S. Bankruptcy Court seeking to reject certain U.S. dealer agreements, and a list of U.S. dealer agreements to be assigned to the buyer of its business assets. Subject to Court approval, 2,392 Chrysler, Jeep® or Dodge dealers will continue with the new company in a global alliance with Fiat once the sale is complete. This action will help improve the landscape of the Chrysler dealership network following the sale and enhance the full line portfolio of Dodge, Jeep and Chrysler products for customers."We are in the process of revitalizing Chrysler's business to succeed as a viable enterprise under new ownership in the future," said Jim Press, Vice Chairman and President. "The unprecedented decline in the industry has had a significant impact on our sales and forced us to reduce production levels to better match the needs of the market. With the downsizing of operations after the sale and reduction of plants and production, similar reductions must be made to the size of the dealer body. We appreciate the support of our dealers and regret this painful action. We wish market conditions made it possible to keep everyone."Chrysler plans to maintain "business as usual" with all of its dealers through the transition. The Company intends to honor warranty and incentive payments during the period that rejected dealers remain active. Chrysler is committed to working with these dealers to ensure a positive relationship with customers. To ease the burden on dealers whose agreements have not been assumed, Chrysler will work to assist in the redistribution of new vehicles and parts to the remaining dealer network."It is with a deep sense of sadness that we must take steps to end some of our Sales and Service Dealer Agreements," said Steven Landry, Executive Vice President, North American Sales and Marketing, Global Service and Parts. "The decision, though difficult, was based on a data-driven matrix that assessed a number of key metrics. In total, 789 dealers, which represents 14 percent of our sales volume, will be rejected and, subject to the court approval, they will discontinue selling Dodge, Chrysler or Jeep vehicles on or about June 9."The review was an objective and rigorous process that was both thoughtful and thorough. We plan to work to have an orderly transition. These are extraordinary times, and they call for an extraordinary response. It is important to our dealers and to our customers that these steps be completed quickly and seamlessly as we transition to a new Chrysler," Landry added.Additionally, on May 12, the Court approved the motion regarding Chrysler LLC's agreement with GMAC Financial Services to provide the automotive financing products and services to the Company's dealers and customers moving forward. GMAC Financial Services will be the preferred lender in North America for Chrysler, Jeep and Dodge dealer and consumer business, including wholesale of new and used vehicles as well as retail. GMAC Financial Services will be able to offer the best long-term finance options for Chrysler dealerships and customers and is established as a bank holding company with access to a variety of funding sources.While difficult, the actions to restructure its dealer network are a necessary part of Chrysler's viability plan and are central to the proposed sale transaction. These actions will help ensure that both remaining dealers and the new company will be stronger and more profitable going forward."A stronger dealer network supported by GMAC's long-term finance options provides an advantage to consumers, and that is what will ultimately drive the creation of a significantly stronger global competitor," said Press.Additional information, including the motions filed, can be found at www.chryslerrestructuring.com.

Chrysler says it can meet new CAFE standards

Chrysler LLC is readily welcoming thew new CAFE standards with open arms. When it happens of course.

"We will" cooperate rather than fight the anticipated increase in the Corporate Average Fuel Economy, or CAFE, standard," Chrysler CEO Bob Nardelli told TheCarConnection.com Wednesday. "We'll have to obviously accelerate significantly our investment in technology to get there," said Nardelli.

Some of the technology being used is a new two mode hybrid system that was jointly developed and engineered by BMW, General Motors, and Daimler. Chrysler's former German parent company.

Chrysler is looking to recent help from the United Auto Workers(UAW) and their agreement to take over Chryslers heft healthcare costs. This helped to free up a large amount of cash. This will allow for Chrysler to invest $500 million dollars in product development.

Source. The Car Connection.