Four months after acquiring ailing automaker Chrysler Corporation, Cerebus Capital Management appears to be rounding out the new leadership. With industry’s shock over tapping tarnished Home Depot chief Robert Nardelli as Chrysler’s new CEO dissipating, Cerebus has revved up its recruitment engine in recent weeks, poaching top talent from Toyota’s sales and marketing ranks.
A recent BusinessWeek article revealed why top talent is jumping to Chrysler. According to the article, “Executives see the combination of a high-profile turnaround job, managed by a smart-money player, as a way into the private equity boom.”
Indeed. Cerebus is dangling some big financial carrots in front of candidates, setting aside as much as 5% of Chrysler equity for the company’s top 75 managers. For a frame of reference on just how attractive these compensation packages are, BusinessWeek’s sources say compensation for Chrysler’s newly appointed sales and marketing chief tops $50 million “and could be worth much more later.”
Chrysler is apparently still on the hunt for a new CFO. Yet, Detroit sources have been mum about who might take over as Chrysler’s new Chief Procurement Officer (CPO). Former Chrysler chief Tom LaSorda now has that role among others, overseeing manufacturing, purchasing, and business development. But with Chrysler’s turnaround highly dependent upon its ability to develop and maintain a competitive supply base, being CPO will need to be a full-time job.
Adding to the speculation that Chrysler will pick a new purchasing chief are rumors that LaSorda is only playing a transition role. It is widely believe that he will depart once Nardelli and Cerebus have the new team in place.
So the question remains, who will be Chrysler’s new CPO? Well, while Cerebus may have its own ideas about recruiting, odds are that Nardelli will tap one of his former cronies at General Electric to lead purchasing. (That’s pure speculation on my part. But a little digging reveals that, when Nardelli jumped to Home Depot, a few of his chief lieutenants came along for the ride.)
Chrysler could certainly benefit from a revitalized and more collaborative purchasing approach reminiscent of former CPO and Chrysler President Tom Stallkamp. It’s future success may depend on it.

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3 responses so far ↓
1 Help Wanted: New Chrysler CPO? | CHRYSLER // Sep 17, 2007 at 7:13 am
[...] Original post by Tim Minahan and software by Piunsanit [...]
2 Charles Dominick, SPSM // Sep 17, 2007 at 8:23 am
“So the question remains, who will be Chrysler’s new CPO?”
How about you, Tim?
3 Supply Excellence » Chrysler Rolls Out Proven Formula for Purchasing Turnaround // Jan 4, 2008 at 3:53 pm
[...] As speculated here back in September, Nardelli yesterday finally tapped his old lieutenant John Campi to lead Chrysler’s global purchasing organization. The reason is simple: As Senior Vice President of Global Sourcing and Vendor Management at The Home Depot, Campi helped fuel the retailers surge to market leadership by keeping a lid on costs and establishing reliable supply lines from far off locales to store shelves. This formula worked well at Home Depot. So why mess with it. Nardelli is hoping Campi will deliver a repeat performance in Chrysler’s revival, especially in supplying markets outside of North America. But the road to recovery won’t be smooth riding. Although backed by Cerebus Capital, Chrysler is not as well funded as some of its larger competitors, giving it less leverage with suppliers. The company hopes to remedy this issue with increased joint ventures and alliances with other automakers, such as Nissan. The alliance strategy is intended to not only increase Chrysler’s buying power but also to expand its model lines, and to offer access and muscle in regional markets. [...]
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