Major shakeup at Chrysler

Cerberus Capital Management LP announced a stunning management shakeup at Chrysler within two days of taking ownership of the Detroit automaker, bringing in a new chief executive, Robert Nardelli, the hard-driving and controversial former CEO of retailer Home Depot.

Current Chrysler CEO Tom LaSorda will be president and vice chairman of Chrysler, reporting to Nardelli, sources at Cerberus and Chrysler told The Detroit News on Sunday.

Nardelli also will serve as chairman of the board of the new Chrysler LLC. In a major surprise, Wolfgang Bernhard, a Cerberus adviser and former high-ranking Chrysler executive, declined an offer to be chairman of Chrysler.

Eric Ridenour, Chrysler's chief operating officer, will leave the company.

The management changes were surprising, given the recent assurances by Cerberus officials that LaSorda would remain as CEO of Chrysler.

A source familiar with the situation said the top management at Cerberus held LaSorda in high regard but preferred to install someone with Nardelli's sharp business acumen. The source said Nardelli, who rose to a high position at General Electric Co., would look at Chrysler with "fresh eyes."

Nardelli is expected to be in attendance today at a midday event scheduled in Auburn Hills to mark the start of a new era for the U.S. automaker. Detroit News