Nardelli chosen to head Chrysler

A message was left Monday with the UAW seeking comment.

Pete Hastings, an auto industry corporate bonds analyst with Morgan Keegan & Co., said Nardelli’s aggressive leadership style may hurt the company as Chrysler and the UAW hammer out a new labor agreement. The old agreement expires Sept. 14.

“He would not have been my first choice if I had been making the decision,” Hastings said. “Tact is important to get done what you need to do in transforming the company and working with the unions, and I’m not sure that’s his strong suit.”

Nardelli said Monday his compensation at Chrysler would be based on the company’s performance, but he wouldn’t give any more details. A company official familiar with his agreement said Nardelli would make $1 a year with further compensation based on performance. The official spoke on condition of anonymity because Nardelli’s agreement isn’t public.

Nardelli said he hopes his Home Depot pay package doesn’t become an issue.

“The last thing that I would want to be as part of the new Chrysler is a distraction,” Nardelli said.

Like other U.S. auto companies, Chrysler has been struggling to make a profit while sales were falling and pension and retiree health costs were rising. Chrysler made $1.8 billion in 2005 but lost $618 million in 2006. The losses led DaimlerChrysler to transfer an 80.1 percent stake in Chrysler to New York-based Cerberus in a $7.4 billion deal. The German automaker, which is to be renamed Daimler AG, retained a 19.9 percent interest in Chrysler.

Chrysler, which shot off fireworks Monday to celebrate its new status, also announced that it is reviving the company’s Pentastar logo. First used in 1962, the five-pointed star is returning with a three-dimensional update. The symbol will be used on buildings, signs and corporate stationery but not on vehicles or in dealerships, LaSorda said.

Besides Nardelli and LaSorda, the 11-member Chrysler board now includes representatives from Cerberus and DaimlerChrysler as well as independent directors. Chrysler’s chief operating officer, Eric Ridenour, decided to leave the automaker after 23 years, Chrysler said.

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