| by Joseph Szczesny | |
(2007-06-04) |
Cerberus' full plans for the Chrysler Group remain something of a work in progress. However, it is becoming increasingly clear that Wolfgang Bernhard, the former top executive officer at Volkswagen and former Chrysler COO, will play a significant role in the reorganized company.
Bernhard reportedly now has an office in Auburn Hills and is hunting for a house in the
During his time at Chrysler, DaimlerChrysler, and Volkswagen, Bernhard had maintained a high profile, though he has grown increasingly wary of the press with which he had cordial relations during his first tour in Auburn Hills.
It is widely assumed Bernhard would not have joined the pursuit of Chrysler unless Cerberus had promised him a piece of the action.
Cerberus, however, hasn't offered any details yet on how they plan to structure or govern the reorganized Chrysler after its cut loose from Daimler for good.
One assumption making the rounds is that Bernhard will assume the role of non-executive chairman of a new governing board that will take over legal responsibility for running the company once the spin-off from DaimlerChrysler AG takes place.
Tom LaSorda, Chrysler's chief executive officer, told reporters that he has signed up to remain as CEO for the company's foreseeable future but also indicated Bernhard, whom he described as a good friend, was available for consultation and to offer advice. Bernhard helped introduce the Cerberus representatives to union leaders, LaSorda noted.
So far, no one is suggesting Bernhard's role has gone beyond consultation. However, Buzz Hargrove, the talkative leader of the Canadian Auto Workers union, told the Wall Street Journal he couldn't see Bernhard staying in the background for long.
Hands on required
Cerberus executives also should have a good understanding by now that automobile companies require active management and hands-on management skills, given the past dealings with various troubled automotive suppliers, including
The auto business is complex, requiring a balance of technology, marketing, production, and finance, and managing the combination is increasingly chewing up management personnel. Chrysler, for example, is working around the departure of several key managers such as George Murphy in advertising and Peter Rosenfeld in purchasing. The leadership of the Chrysler design staff, traditionally one of the company's strong points, has turned over completely in the past month.
Chrysler continues to move ahead with future plans by announcing it preparing to invest $570 million in a new engine plant in
Meanwhile, Chrysler confirmed that representatives from Chery, the Chinese automaker that's supposed to build a subcompact car for Chrysler, did pay a visit to Auburn Hills last week as scheduled. No details of the talks emerged after the meeting but Chery didn't issue any statements, saying the deal was off, which is probably a good sign.
It's also probably safe to assume that Bernhard was present at the meeting to offer assurances on behalf of Chrysler's next owners, assurances designed to allay any concerns or misgiving Chery seems to be having about the deal.
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