Laura Soave named head of Fiat brand in North America

Chrysler Group today appointed Laura J. Soave to serve as the Head of the Fiat Brand for North America. She will lead the reintroduction of Fiat to the North America, beginning with the Fiat 500. She holds full profit and loss responsibility for the Fiat product portfolio in North America. In her position, Soave, who reports to Sergio Marchionne, Chief Executive Officer of Chrysler Group, will work with Chrysler brand presidents and industrial leads to fully integrate Fiat product into the marketing, sales, service and dealer network organizations.

“Laura joins Chrysler with extensive experience in automotive marketing,” said Marchionne. “Her rich background will serve as a springboard for reintroducing the Fiat brand when it takes to U.S. and Canadian roads this December after more than a 25-year absence.

Soave joins Chrysler Group from Volkswagen of America where she most recently was the General Manager of Experiential Marketing leading consumer marketing initiatives. She also was the head of advertising and communications activities for all large passenger vehicles and SUVs. Previously, she worked at Ford Motor Company in a variety of posts from 1997 to 2006. Soave holds a MBA in marketing from the University of Detroit and a BS in business administration from Walsh College.

Bartoli moves up to international role

Today, Chrysler announced that Stephen Bartoli, who has headed Chrysler Europe sales and marketing, will now be the head of international product planning, business development, and integration, leading branding, strategy, and alliances outside North America. Bartoli reports to Mike Manley, who is in charge of international operations as a whole.

His former position will be held by Steve Williams, who is stepping up to head regulatory and planning issues in addition to his current advance engineering work.

One rationale behind the DaimlerChrysler deal was to increase Chrysler’s international presence, but it quickly became clear that Daimler did not intend for that to be a primary outcome. Fiat, on the other hand, has made it clear that Chrysler has a definite and well defined role to play internationally, providing vehicles larger than those which have been successful at Fiat (Iveco excepted). Chrysler’s stated goal is to bring global sales to 500,000 per year by 2014, more than double the current rate, partly by selling Chrysler Group vehicles through Lancia and other Fiat delivery routes, and partly by selling Fiat vehicles where the Italian company does not have a substantial presence.

(Via the Detroit News)

Nesbitt out as Cadillac brand chief

Bryan Nesbitt, designer of the PT Cruiser who decamped for General Motors where he produced the HHR, is stepping down from his post as chief executive for the Cadillac brand. Nesbitt, who had held the post since last August, will return to GM’s design organization as executive director of the advanced concept group where he will report to Ed Wellburn.

Nesbitt’s move was just one of the changes in the latest round of musical management at GM. Susan Docherty, named vice president of North American sales and marketing in December, was stripped of her sales responsibilities. Rising star Mark Reuss will pick up the sales duties and Docherty will now report to him. The split extends to the four GM brands: marketing executives will report to Docherty, sales honchos to Reuss.

Chairman and CEO Ed Whitacre is remaining true to his requirement for fast results. Docherty didn’t even get three months in her new position.

Marchionne had big payday in 2009

Fiat and Chrysler CEO Sergio Marchionne received a bonus of about $1,835,000 last year from Fiat SpA, boosting his total compensation to almost $6,525,000 a hefty boost over the $4,622,000 he was paid in 2008. Marchionne’s base salary is roughly equivalent to $4,146,000. European “cash-for-clunkers” incentives drove car sales to high enough levels for the bonus to kick in.

Marchionne’s package is better than the $2,719,000 Daimler AG paid to Dieter Zetsche but not as generous as Martin Winterkorn’s nearly $8,292,000 for his work as CEO of Volkswagen.

Marchionne does not receive any regular compensation from Chrysler Group but has been given $600,000 worth of stock that he can’t sell until Chrysler is profitable and has repaid its government loans.

(Note: All figures based on current euro-dollar exchange rates)

GM CEO to get $9M pay package, former CEO to get $2,954.50/hour as consultant

GM Vice Chairman Bob Lutz’s laments about underpaid executives have not fallen on deaf ears. Current CEO Ed Whitacre, who got $158 million when he retired from AT&T, will receive a $9 million compensation package, including $1.9 million in annual salary, retroactive to January 1, 2010.

GM’s generosity does not end there: former CEO Fritz Henderson, who was forced out last December, has been rehired as a consultant. Henderson will get $59,090 per month for about 20 hours of work. That’s $2,954.50 per hour; 105 times the hourly wage of a UAW worker or 407 times the minimum wage typically paid to part-time employees.

Federal compensation czar Ken Feinberg has indicated he will probably approve the package but could still reduce it, perhaps to the $500,00 that was supposed to be the cap for CEO compensation at companies receiving federal bailouts.

Whitacre did have to make some sacrifices. He will not receive additional compensation for his duties as chairman of GM’s board of directors. Henderson will also have to reduce his standard of living by a third, but since he only has to devote 20 hours a month to GM, he will have plenty of time to find another part-time job (greeter at Wal-Mart?) to make up the difference.

Visteon asks court for $34.5 million for executive bonuses

Bob Lutz is complaining about the underpaid executives at GM and now, even as it slashes its retirees’ benefits, bankrupt Visteon wants to hand out millions of dollars in bonuses.

Visteon yesterday asked U.S. Bankruptcy Court Judge Christopher Sontchi for up to $34.5 million to pay bonuses to 1,300 employees. Of that money, as much as $5.9 million would be for Visteon’s top 12 executives. The bonuses would be paid out based on how close the company comes to hitting its objectives for 2010.

Unions and the U.S. Trustee for the case have objected to the bonuses. Visteon’s creditor committee originally objected but withdrew their protest after Visteon raised the bar for qualification.

At the same time, Ford’s former parts operation appealed Judge Sontchi’s decision to allow retirees to have representation on the unsecured creditors’ committee or to have a committee of their own that would be a party to the bankruptcy hearings. Citing pension laws, Visteon attorneys said retiree interests should be handled by the federal Pension Benefit Guaranty Corp. (PBGC).

With Sontchi’s approval, Visteon has already terminated the health benefit plans for 6,650 current and future retirees, effective at the end of March. The International Union of Electrical Workers is appealing the decision. Visteon is trying to unload its pension obligations onto the PBGC, a move that could potentially cost Visteon’s current retirees $100 million in benefits.

Judge Sontchi declined to issue a ruling, saying he would take Visteon’s appeal over retirees’ representation under advisement and that he would consider the bonus request.