Sources say Chrysler might get new BOD

Automotive News is reporting Chrysler and Fiat are considering a new board of directors that could include Fiat executives and members of the Obama Administration’s auto task force. AN’s sources, who were not identified, also say a new management team, headed by Fiat CEO Sergio Marchionne, is being discussed. No mention was made of what role Chrysler’s current leadership, including CEO Bob Nardelli and Presidents Jim Press and Tom LaSorda, would play in the new structure.

Neither automaker had a comment on the rumors. In a prepared statement, Chrysler spokesman Todd Goyer said only that the current management team is working to “get the company on a solid foundation.”

Fiat may also be able to provide some funding to seal the alliance with Chrysler. Fiat is owed $5.2 billion by CNH Capital, the finance operation of CNH Global, the world’s second-largest manufacturer of farm and construction equipment. CNH, formed by the 1999 merger of Case and New Holland, is 90 percent owned by Fiat and the repayment of the loan would replenish Fiat’s cash reserves and could also be used for the alliance with Chrysler. CNH Capital has already applied for funds from the Federal Reserve.

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