Ex-Duracell CEO to lead Fiat-Chrysler alliance

C. Robert Kidder will become chairman of a restructured Chrysler LLC after the automaker emerges from bankruptcy as a new company allied with Italy's Fiat SpA.

Kidder will be the first government-appointed director of the new automaker, which will be called Chrysler Group LLC. He will replace Robert Nardelli as chairman but will not assume Nardelli's role as chief executive officer. That job is expected to go to Fiat CEO Sergio Marchionne. Nardelli has said he will step down when Chrysler comes out of bankruptcy.

Chrysler found Kidder through Spencer Stuart, a New York executive recruiting firm the automaker hired at the request of the Obama administration's auto task force, a person familiar with the matter said. The government pushed General Motors Corp. to retain the same firm to find new board members.

Kidder does not come from an automotive background, but the 64-year-old has a lengthy corporate resume and was identified early on by the U.S. Treasury Department to become one of the new Chrysler's board members. The auto task force approved his appointment to the board and as chairman.

Under the terms of the proposed Chrysler-Fiat partnership, the U.S. government will select four of the nine members of the Chrysler board; the remaining five will be chosen by other Chrysler stakeholders.

The board was to select a chairman, but people close to the situation said it became evident Kidder would be an effective choice and qualified to help shape the rest of the board.

Marchionne is expected to be named a director as well.

Kidder is chairman and CEO of 3Stone Advisors LLC, an investment firm that specializes in "clean-tech companies." He is the former chairman and CEO of Borden Chemical Inc. and Duracell International Inc.

Kidder also is the lead director on the board of Morgan Stanley, one the creditors that agreed to swap nearly $6.9 billion in Chrysler debt for $2 billion in cash. And he is on the boards of drug manufacturer Schering-Plough Corp. and Microvi Biotech Inc. His only automotive experience came with consulting firm McKinsey and Co. Inc., when he worked with an automotive client.

"He is a very blue chip candidate with an appropriate resume," said John Casesa of Casesa Shapiro Group LLC in New York. "His job is to be an agent for the stakeholders and he is certainly equipped to do that."

A Treasury spokesperson said managing the taxpayers' investment is a responsibility being taken seriously.

Nardelli will leave Chrysler when the company emerges from bankruptcy to become an adviser for Cerberus Capital Management LP, the private equity firm that was the majority owner of Chrysler before bankruptcy.

"We are most fortunate that Bob Kidder will lead the new company through its transformation," Nardelli said. "With his broad expertise serving on numerous world-class boards and his accomplished business background, Bob will provide the leadership and strategic counsel that will help to create a strong global competitor."

Kidder grew up in Michigan and Toronto and earned a degree in industrial engineering from the University of Michigan. He lives in Columbus, Ohio. It is not known whether he plans to move to the Detroit area.

"I am pleased to join Chrysler at a time when Chrysler is poised to launch an exciting new era," Kidder said. "I am confident that Chrysler will emerge from Chapter 11 a lean and powerful competitor."