Chrysler abandons Cerebrus

Ailing car giant Chrysler has sought out Fiat chief executive Sergio Marchionne to assume management control of the firm as it attempts to distance itself from private equity-backer Cerebrus Capital Management.

As part of a wave of senior management changes, Chrysler has also recruited a private equity specialist to take over as chairman. Ex-Duracell CEO, Robert Kidder, a private equity investor and former consultant who once worked for Ford Motor, will become chairman of the ailing car giant.

He will succeed Chrysler’s Bob Nardelli, who is stepping down as the bankrupt automaker’s chairman and chief executive.

Kidder’s appointment was the first announced for the nine-member board that will oversee the new company. The US Treasury will appoint four of those directors, while Fiat will appoint three board members.