The new board appointments have experience in finance, corporate restructurings and modifying or breaking union contracts in the airline industry.
In an unusual Sunday evening announcement, Chrysler Group LLC said tonight that with the appointment of five additional members to its Board of Directors, its new governance structure is now complete.
The nine-member Board will be responsible for the future profitability of the group, which is largely held by the United Auto Workers Union, and U.S. and Canadian taxpayers. Fiat has a 20% stake in the company, which is due to rise to a majority interest over time.
Chrysler Group LLC, was formed in June 2009 from an “alliance” with the Fiat Group, and produces Chrysler, Jeep, Dodge, Mopar and Global Electric Motors (GEM) brand vehicles and products.
The new board appointments have experience in finance, corporate restructurings and modifying or breaking union contracts in the airline industry.
They face an immediate sales problem. Even though Chrysler Group emerged from bankruptcy early last month, its June sales results continued the trend that ultimately forced the liquidation of the Old Chrysler. The ongoing shift of buyers away from trucks and truck-derived vehicles has left it on the wrong side of the supply curve.
Before the Chrysler bankruptcy filing in March, the company had an average of $5,566 of incentives in effect — roughly 20% to 25% of the wholesale cost of a vehicle — and sales declined almost 50% anyway.
Overall in June, Chrysler Group sales declined to 68,297 vehicles, a decrease of 42% compared with June 2008, while the market is down on average 37%. It was the largest decline among the major automakers.
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“The formal creation of our Board of Directors is another important step toward building a viable Chrysler Group for the long term,” said C. Robert Kidder, acting Chairman of the Board, which is expected to hold its first meeting on July 29. “Our board members bring a wealth of talent and experience in areas such as transportation, finance and investing, energy and government. We will work together as a Board of Directors to support Chrysler Group’s success to the benefit of all stakeholders.”
Kidder, currently Chairman and CEO of 3Stone Advisors LLC, was appointed to the Chrysler Group LLC Board of Directors on May 20 under the direction of the U.S. Treasury’s Auto Task Force. Sergio Marchionne, CEO of Fiat SpA and Chrysler Group, Alfredo Altavilla, chief executive officer of Fiat Powertrain Technologies, and James Blanchard former U.S. Congressman and Governor of Michigan, the UAW appointee to the board, were put in place soon after.
Now joining the board are: George F.J. Gosbee, Chairman, CEO and President of Tristone Capital Inc.; Douglas Steenland, former CEO of Northwest Airlines; Scott Stuart, a founding partner of Sageview Capital LLC; Ronald L. Thompson, Chairman of the Board of Trustees for Teachers Insurance and Annuity Association (TIAA); and Stephen Wolf, Chairman of R.R. Donnelley & Sons Co.
“While Chrysler Group LLC is a private company, the Board is focused on supplying the strong governance that would be expected of a public company,” Kidder said. “We are looking forward to working as a single team to provide the oversight, guidance and expertise that will help make Chrysler Group successful.”
Chrysler Group LLC’s Board of Directors:
1. Alfredo Altavilla is the Chief Executive Officer of Fiat Powertrain Technologies and Senior Vice President of Business Development of Fiat Group Automobiles. He joined Fiat Auto in 1990 as manager of product development, playing roles of increasing responsibility in the field of international ventures and strategic planning.
2. James J. Blanchard, Partner and Co-Chairman, Regulatory and Government Affairs at DLA Piper, one of the world’s largest law firms. He is former ambassador to Canada, served two terms as governor of Michigan and four terms as a member of the United States Congress.
3. George F.J. Gosbee, Chairman, CEO and President of Tristone Capital Inc., a global energy advisory firm that provides fully integrated investment banking, property acquisitions & divestitures, and global equity capital markets services. Mr. Gosbee founded the firm in 2000, creating a unique model to assist oil and gas companies by combining technical expertise with financial professionals.
4. C. Robert Kidder, who currently serves on the boards of Morgan Stanley, where he is the lead director, Schering-Plough Corporation, and Microvi Biotech Inc. He previously served as Chairman and Chief Executive Officer of both Duracell International Inc. and Borden Chemical Inc. and as director of such companies as Electronic Data Systems Corporation and General Signal Corporation. During his tenure with McKinsey and Co. Inc., he worked with Ford Motor in the automotive industry. He currently is Chairman and CEO of 3Stone Advisors LLC, an investment firm that focuses on clean-tech companies.
5. Sergio Marchionne, CEO of Chrysler Group LLC since June 2009. Previously, he was appointed Chairman of CNH Case New Holland in April 2006 and CEO of Fiat Group Automobiles in February 2005. He was appointed CEO of Fiat S.p.A. in June 2004 and has been a Member of the Board since May 2003. He is Chairman of SGS Group of Geneva, and among other positions he was CEO of SGS Group of Geneva and was Chairman and CEO of Lonza Group Ltd.
6. Douglas Steenland, former CEO of Northwest Airlines. He joined Northwest Airlines in 1991 as Vice President and Deputy General Counsel. After becoming CEO in 2004, he successfully reshaped Northwest Airlines into a financially viable airline. Mr. Steenland also worked as a Senior Partner at the Washington, D.C. law firm of Verner, Liipfert, Bernhard, McPherson, and Hand and served in the Office of the General Counsel of the U.S. Department of Transportation.
7. Scott Stuart, a founding partner of Sageview Capital LLC, and former partner and member of the investment committee at Kohlberg Kravis Roberts & Company (KKR). He currently serves on the board of EverBank Financial Corp., Aveos Fleet Performance Inc. and previously served on such boards as Borden Chemical, Inc., Duracell International Inc., Nabisco, Inc. and Sealy Corporation.
8. Ronald L. Thompson, Chairman of the Board of Trustees for Teachers Insurance and Annuity Association (TIAA), a for-profit life insurance company that serves the retirement and financial needs of faculty and employees of colleges and universities, hospitals, cultural institutions and other non-profit organizations. He previously owned and operated Midwest Stamping Company of Maumee, Ohio, and rapidly grew the business into a first tier automotive supplier and one of the largest minority-owned companies in the U.S.
9. Stephen Wolf, Chairman of R.R. Donnelley & Sons Co. His career in the aviation industry began in 1966 with American Airlines. After positions at Pan American World Airways, Continental Airlines and Republic Airlines, he served as Chairman and Chief Executive Officer of UAL Corporation and United Air Lines, Inc. from 1987 to 1994. He became Managing Partner of Alpilles LLC in 2003.