DETROIT -- Chrysler LLC CEO Bob Nardelli will step aside after the company emerges from Chapter 11 bankruptcy, and co-President Tom LaSorda will retire before then.
Now is an appropriate time to let others take the lead in the transformation of Chrysler with Fiat, Nardelli said in a statement. I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance.
The White House expects the bankruptcy case to take 30 to 60 days.
Nardelli came to Chrysler in August 2007 after Cerberus Capital Management LP took an 80.1 percent stake in the automaker. He replaced LaSorda, who said today he will likely retire within 60 days.
Nardelli has guided the company through negotiations with the UAW and the U.S. Department of Treasury auto task force. Chrysler has been surviving on a $4 billion Treasury loan.
Nardelli, who turns 61 on May 17, represented the company in congressional hearings late last year. He plans to return to Cerberus as an adviser.
David Kelleher, a Philadelphia Chrysler-Dodge-Jeep dealer, praised Nardelli and Chryslers management team.
If people on top of the board hadnt done the job they did in the last six months, we wouldnt have a company, Kelleher said.
A senior administration official praised the incredible role of Chrysler management and CEO Bob Nardelli. He led the team to this place and really deserves recognition for what he did.