According to news circulating in the auto industry today, Wolfgang Bernhard who is a former Chrysler executive and employed by Cerberus Capital Management as adviser in the acquisition of Chrysler, is also reported to return to Chrysler as Chairman once the private equity group finally takes over Auburn Hills-based automaker.
It was also reported that Tom LaSorda, the current CEO of Chrysler would remain in position even after the appointment of Bernhard this was according to the German business magazine Manager.
Mary Gauthier, a Chrysler spokeswoman in Germany said that the company will not make any announcement with regards to its new chairman until the deal is not concluded. She also added that for the meantime, LaSorda will continuously coordinate with Bernhard for advice.
Last January Bernhard was ousted out of Volkswagen after serving as the CEO of Volkswagen AG. He has made his mark at the German car giant after he was able to squeeze out costs from union workers using the “shifting-of-production-outside-the-country” threat. He also helped in planning the 20,000 job cuts at Volkswagen while extending the work week in 2006.
Bernhard was invited by Cerberus to take part on the transaction for Chrysler where Bernhard happens to be working previously as a chief operating offer under then CEO Dieter Zetsche. He was also known for his role in convincing the United Auto Workers to back Cerberus in its desire to purchase Chrysler.
Bernhard will also be keeping himself busy in helping Chrysler regain financial health from its depressing $1.99 billion operating loss in the first quarter. Chrysler needs to shift its focus since its been relying on trucks and SUV sales as compared to other automakers and we all know just how high gas prices nowadays are.
Cerberus is currently in the process of purchasing 80.1 percent stake in Chryslers from DaimlerChrysler which is to be concluded in the third quarter that is despite reports of financing problems.
Chrysler’s Lifetime Warranty
Automobile warranties have been used as yardstick that measures how much trust an automaker has on the quality of its products. And just recently Chrysler the producer of
Jeep Wrangler parts has announced that its will be extending its powertrain warranty from 3-year/36,000-mile Basic Limited Warranty to a new Lifetime Powertrain Warranty. The new Lifetime Powertrain Warranty will apply to most new Jeep®, Chrysler, and Dodge vehicles that were purchased from dealer inventory and delivered on or after July 26, 2007.
The new warranty will cover the cost of all parts and labor required to repair the covered powertrain components such as engine, transmission, and drive system. This special warranty offering are to be given to the first-registered owner or retail lessee. For more info on the new Chrysler Lifetime Powertrain Warranty customers may visit Jeep.com, Chrysler.com, and Dodge.com. Official warranty promotion has started last July 27, 2007.
Tags: financial health, gas prices, automakers, auto industry, daimlerchrysler, capital management, volkswagen ag, german car, united auto workers