News yesterday that the newly independent Chrysler has appointed ex-Home Depot Chief Robert L. Nardelli as Chief Executive Officer sent shockwaves through Detroit. (And reverbrations through the entire automotive industry.)

Nardelli is certainly an unlikely choice for an automaker looking to mount a comeback both for its finances and for its brand. First, he’s an ousider. And the automotive industry does not take kindly to outsiders. Sure, Ford named ex-Boeing exec Alan Mulally to its top post last year. But, with Ford’s lackluster sales and continued financial slump, the jury is still out on the Mullaly experiment.

Worse, Nardelli comes with enough negative baggage to fill a Chrysler Aspen. (That’s Chrysler’s oft-forgotten full-size SUV, for those of you wondering what the heck an Aspen was.) Home Depot’s board dismissed Nardelli last year over a sagging stock price and questions about his leadership. The exit was made worse when shareholders revolted at reports that Nardelli departed with a severance package valued at $210 million. (No word yet on the Nardelli’s out package at Chrysler. But, rest assured, it will be watched closely.)

Both traits put Nardelli at a disadvantage in his new role, particularly with union officials. Coming from a retailing background, Nardelli will need to educate himself on the auto manufacturing business. (At least Ford’s Mulally came directly from global manufacturing — albeit aerospace manufacturing — that had experience dealing with unions.) It is certain that Chrysler will remind us of Nardelli’s climb at General Electric while downplaying his role at Home Depot.

Already uncertain about the intent of Chrysler’s new owner, Cerebus Capital Management, United Automobile Workers (UAW) officials are going to have a hard time selling their members on why they should trust a golden (parachute) boy like Nardelli. Being that Chrysler just began negotiations on a new contract with the UAW, any honeymoon Nardelli expected will be shortlived.

Nardelli will also need to spend more time wooing suppliers. Chrysler has a higher reliance on external suppliers than other Detroit automakers — a result of of a previous restructuring under Lee Iaccoca. And Nardelli’s retailing past has a reputation for beating down suppliers on price.

According to a Detroit Free Press article, this combination is making Chrysler’s suppliers nervous. “I think we need to be prepared to be even tighter in our purse,” Chrysler suppliers KUKA Flexible Production Systems Corp. President and CEO Larry Drake told the Free Press. Drake said he feared an ex-retailer would attempt to apply the same tactics to higher value auto assemblies as they do with commodity goods.

To make matters worse, new allegations surfaced last week that four Home Depot purchasing managers were fired for unethical purchasing tactics that may have occurred under Nardelli’s watch. The retailer said the employees were let go for allegedly taking millions of dollars in kickbacks to ensure that certain flooring products reached retailer’s shelves. The FBI is now investigating the matter.

If that wasn’t distress enough for suppliers, the word is that Chrsyler CPO Thomas Sidlik is among the executives that will be departing the company.

Considering all this, why was Nardelli tapped to right the ship at Chrysler? Good question. Cerebus says Nardelli has a successful track record for driving turnarounds. And, in his defense, despite the Home Depot debacle, he was able to double sales at the retailer during his tenure.

Another positive: Cerebus itself knows a thing or two about the automotive business. Hot off its acquisition of Tier-1 auto supplier Tower Automotive, Cerebus also has a controlling stake in GMAC Financial Services. It also owns both Guilford Mills, the largest automotive seating supplier in the U.S.; and Peguform Group, a German-based parts maker. And Cerebus leadership promises to pour more than $6 billion into revitalizing Chrysler. (All of which begs the question whether vertical integration may be back in vogue? But I’ll save that for another post.)

Upshot: Nardelli will be fighting an uphill battle to return even a little bit of luster to Chrysler. Yet the coming months will provide a good forecast of his future success. If Nardelli can negotiate a favorable contract with the UAW and develop a solid supply strategy that’s amenable to global suppliers, he has a chance. If not, he’ll never make it out of the starting gate.