Bailout Watch 500: Chrysler to Fiat, Feds: It's All Yours!

CEO Bob Nardelli is punting. Boot ‘Em Bob has told the troops that Chrysler would cede control of its board and senior management to Fiat if the two automakers “merge.” “The U.S. government and Fiat would appoint a board of directors for Chrysler, with a majority of them independent directors who are not employees of either automaker,” Nardelli said in an internal memo intercepted by Reuters. “The board will have the responsibility to appoint a chairman. The board also will select a CEO with Fiat’s concurrence.” Seeing as Nardelli walked away from Home Depot with over $240 million in severance pay, one wonders how much it would cost management (that’s Uncle Sam now) to get rid of him this time ’round. Cerberus exits stage right. American Leyland enters stage left. Anyway, here’s the weird part: Reuters is a bit more specific about the government’s participation in this newly formed Chrysler Board than Automotive News, even though Reuters credits Automotive News for the info.

The two automakers are discussing a new seven-member board for Chrysler that would include representatives from Fiat and possibly President Barack Obama’s automotive task force overseeing the restructuring of the auto industry, Automotive News reported, citing sources close to the negotiations.

Also among the options under discussion is a direct role in Chrysler’s operations for Fiat CEO Sergio Marchionne, possibly even the chief executive’s job, according to the report.

Only Automotive News [sub] puts it slightly differently (at least in the latest version):

The U.S. government and Fiat would appoint a board of directors for Chrysler, with a majority of them independent directors who are not employees of either automaker, Nardelli said in an internal memo to workers obtained by Reuters.

Hmmmm.