2007 New (horizontal) Chrysler logo.
Auburn Hills, Michigan , Jun 10, 2009.
As Chrysler Group LLC prepares to begin operations, the new company formed in alliance with Fiat announced an organizational restructuring to focus on the Chrysler, Jeep®, Dodge and Mopar® brands. The new leaner, flatter structure is intended to restore brand promise and dealer confidence. All appointments are effective immediately.
“I personally feel privileged to have the opportunity to lead the new Chrysler and to work with senior management to build this company and our great brands into all we know they can and should be,” said Sergio Marchionne, who today was named Chief Executive Officer of Chrysler Group LLC. “That effort starts with leadership.”
Chrysler Group’s new organization is based on a global brand-focused structure comprised of the Chrysler, Jeep, Dodge and Mopar brands, each with full profit and loss accountability. Common Commercial, Industrial and Corporate functions have been put in place to support the development, manufacture, distribution and sale of Chrysler, Jeep and Dodge products and Mopar parts by the brand organizations.
“The new company’s leadership structure has been developed to rebuild and grow the four iconic Chrysler brands,” said Mr. Marchionne. “With a flattened organization designed to give leaders broad spans of control, we are able to increase the speed of decision-making and improve communication flow, ultimately bringing Chrysler Group management and employees closer to our customers.”
To assist the new company in the transition, Jim Press is appointed Deputy CEO and Special Advisor, reporting to Mr. Marchionne. In this position, Mr. Press will be instrumental in the restructuring of the Chrysler Group LLC. Mr. Press served most recently as Chrysler LLC Vice Chairman & President.
Brand and Commercial Organizations.
Mr. Marchionne added: “The focus of the Brand organization is to rebuild and grow the company’s four brands, beginning with their strong heritage. The structure is designed to focus on external competition, avoiding product overlap while maintaining the highest possible level of industrial optimization. The new company will align its networks with the brand positions, to restore brand promise and dealer confidence.”
In support of the Chrysler Group’s brand operations, the company announced the following appointments reporting to Mr. Marchionne:
Peter Fong is appointed President & Chief Executive Officer, Chrysler Brand, with full profit and loss responsibility for the Chrysler product portfolio. Mr. Fong will be the lead executive for the Sales organization with enterprise-wide responsibility. He served most recently as the Director of the Mid-Atlantic Business Center.
Michael Manley is appointed President & Chief Executive Officer, Jeep Brand, with full profit and loss responsibility for the Jeep product portfolio. Mr. Manley will also have enterprise-wide responsibility for the Product Planning organization with responsibility for coordinating the product plan and volume requirements of the Chrysler, Jeep and Dodge brand functions. He will work with the other brand Presidents to translate these into operating plans for the product development and manufacturing organizations. Mr. Manley served most recently as Executive Vice President, International Sales & Global Product Planning Operations.
Michael Accavitti is appointed President & Chief Executive Officer, Dodge Brand, with full profit and loss responsibility for the Dodge product portfolio. Mr. Accavitti will also have enterprise-wide responsibility for the Marketing organization with responsibility to coordinate worldwide marketing strategies, brand development and advertising for the Chrysler, Jeep and Dodge brands. Mr. Accavitti served most recently as Director, Dodge Brand Marketing.
Pietro Gorlier is appointed President & Chief Executive Officer, Mopar Service & Parts and Customer Services, with full profit and loss responsibility for the Mopar product portfolio and Service & Parts operations as well as Chrysler’s Customer Service operations. Mr. Gorlier will have shared accountability with the brands, responsible for parts and services growth and delivery and an integrated world-class approach to customer support. Mr. Gorlier joins Chrysler Group from Fiat Group Automobiles and CNH, where he most recently served as the head of the Network and Owned Dealerships organization.
Joe ChamaSrour will continue to lead the new company’s operations in Mexico as President & CEO, Chrysler de Mexico.
Reid Bigland will continue to lead the new company’s operations in Canada as President & CEO, Chrysler Canada.
Following a lengthy career with Chrysler, Steven Landry, Executive Vice President, North American Sales & Marketing, Global Service & Parts, has announced his intention to retire. Mr. Landry has offered to assist the new company in the transition.
In addition to the appointments of the Brand CEOs, in support of the commercial operations, Chrysler Group LLC announced the following appointment reporting to Mr. Marchionne:
Peter Grady is appointed to lead the Network Development & Fleet organization as Vice President. His responsibilities include ensuring that the Chrysler Group’s restructured dealer network operates at the highest possible level to ensure optimal sales volumes for Chrysler, Jeep and Dodge products. He is also responsible for managing Chrysler Group’s fleet sales organization. Mr. Grady recently served as Director, Franchise Planning and Administration.
“Control over commercial and industrial investments is related to the brand,” said Mr. Marchionne. “Therefore we have developed a matrix-based organization where team work and a disciplined management process are at the core of its success. Understanding the management decision-making process and individual roles are key.”
In support of the industrial operations of Chrysler Group LLC, the following appointments are announced, reporting to Mr. Marchionne:
Scott Kunselman is appointed to lead the Product Engineering organization as Senior Vice President. Mr. Kunselman replaces Frank Klegon, who has announced his intention to retire after a distinguished career with Chrysler. In this position, Mr. Kunselman has responsibility for all product development strategy and advance-vehicle engineering. He also oversees product-development processes, testing and validation. Mr. Kunselman recently served as Vice President, Truck Product Team and Core Team Leader.
Ralph Gilles will continue to lead the Product Design organization as Senior Vice President.
Frank Ewasyshyn will continue to lead the Manufacturing organization as Executive Vice President and assumes responsibility for the World Class Manufacturing processes which are in the process of being rolled out throughout Chrysler’s manufacturing footprint.
Doug Betts will continue to lead the Quality organization as Senior Vice President.
Scott Garberding will continue to lead the Procurement organization as Senior Vice President.
Michael Keegan is appointed to lead the Supply Chain Management organization as Senior Vice President. In this position, Mr. Keegan is responsible for the critical volume planning and logistics functions in close coordination with the Brand CEOs. Mr. Keegan is also responsible for driving dramatic improvements in service levels, working capital efficiency and complexity reduction; optimizing demand and supply to benefit balancing the needs and requirements of the individual brands; and, establishing consistent and effective supply chain processes. Mr. Keegan recently served as Vice President, Volume Planning and Sales Operations.
Mr. Marchionne added: “As we work to rebuild Chrysler to its rightful place, our corporate support functions have a critical role. These organizations provide systems, processes, knowledge and tools to sustain the business requirements. They also ensure consistency across the company and most important, compliance to applicable laws and regulations worldwide.”
In support of the corporate needs of Chrysler Group LLC, the following appointments are announced, reporting to Mr. Marchionne:
Richard Palmer is appointed to lead the Finance organization as Senior Vice President and Chief Financial Officer. In this position, he is responsible for all of Chrysler Group LLC’s finance activities including Corporate Controlling, Treasury and Tax. Mr. Palmer joins Chrysler Group LLC from Fiat Group Automobiles, where held the position of Chief Financial Officer. Mr. Palmer replaces Ron Kolka who will lead the orderly wind down of Chrysler LLC.
Jan Bertsch will continue to lead the Information Technology (IT) organization as Senior Vice President, Treasurer and CIO (Chief Information Officer). She will continue in her Treasury role reporting to Richard Palmer.
Nancy Rae will continue to lead the Human Resources organization as Executive Vice President.
Holly Leese will continue to lead the Legal organization as Senior Vice President and General Counsel for Chrysler Group LLC.
Gualberto Ranieri is appointed to lead the Communications organization as Senior Vice President. Mr. Ranieri joins Chrysler Group LLC from Fiat Group, where he led the International Communications function. Concurrently he has been responsible for the Communications function for CNH (Case New Holland), a leading manufacturer and seller of agriculture and construction machinery, which is part of the Fiat Group.
Laurie Macaddino is appointed to lead the Audit organization as Vice President. In this position, she will report on a dotted-line basis to the Chairman and the Audit Committee of the Board of Directors. Ms. Macaddino recently served as Vice President, Finance Operations.
John T. Bozzella will continue to lead the External Affairs organization as Senior Vice President.
Barb Pilarski has been appointed to lead the Business Development organization as Vice President. Ms. Pilarski recently served as Executive Director, Mergers & Acquisitions, NAFTA and South America.
Mark Chernoby has been appointed Vice President, Executive Coordinator and C/D Segment Product Engineering. In this position, he will lead the C/D Segment Product Engineering and be the executive coordinator for the management team.
With these appointments, the restructuring of the supporting Chrysler Group LLC organizations begins immediately. Final additional organization structures to be announced upon completion.
“As we begin the process of redesigning the new Chrysler and moving toward our new place in the American – and global – automotive industry, I would like to take the opportunity to thank the men and women of the company for their many contributions,” Mr. Marchionne said. “Chrysler has been through a great deal of hardship and uncertainty over the recent past and I want to recognize their commitment.”
Under the terms approved by the U.S. Bankruptcy Court in New York and various regulatory and antitrust regulators, the company formerly known as Chrysler LLC today formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC.
In addition to Mr. Marchionne, currently the Chief Executive Officer of Fiat S.p.A. serving as CEO, Chrysler Group LLC will be managed by a nine-member Board of Directors, consisting of three directors to be appointed by Fiat, four directors to be appointed by the U.S. Government, one director to be appointed by the Canadian Government and one director to be appointed by the United Auto Workers’ Retiree Medical Benefits Trust. The Board is expected to name C. Robert Kidder as Chairman. The process of determining additional board members is continuing and updates will be announced as appropriate.
About Chrysler Group LLC.
Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep®, Dodge and Mopar® brand vehicles and products. With the resources, technology and worldwide distribution network required to compete effectively on a global scale, the alliance builds on Chrysler’s culture of innovation – first established by Walter P. Chrysler in 1925 – and Fiat’s complementary technology.
Headquartered in Auburn Hills, Mich., Chrysler Group LLC’s product lineup features some of the world's most recognizable vehicles, including the Chrysler Town & Country, Jeep Wrangler and Dodge Ram. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group LLC to offer an expanded product line including environmentally friendly vehicles.
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