Businessweek: Chrysler, Fiat Drive Off the Lot - by David Kiley and David Welch

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Chrysler, Fiat Drive Off the Lot - by David Kiley and David Welch

Italian automaker Fiat (FIA.MI) officially began running the newly constituted Chrysler Group on Wednesday, June 10, a day after a deal was cleared by the courts enabling the Detroit automaker to emerge from Chapter 11 bankruptcy. Freed from bankruptcy court, the new Chrysler Group faces a recession-wracked economy and no new vehicles for months. As arduous as Chrysler's path has seemed during the past six months—with an avalanche of negative publicity, collapsing car sales, and bankruptcy—the road ahead promises to be even more difficult. The new company will be working in a recession-weary environment, and with no significant new product arriving for months. "I would call this deal a move to salvage Chrysler, not save it, and we will have to see what comes of the salvage," says John Casesa, managing partner of New York-based Casesa Shapiro Group, an advisory firm specializing in the auto industry.

Fiat CEO Sergio Marchionne, who will also serve as Chrysler CEO, made his first management moves on Wednesday. He named Chrysler Vice-Chairman James Press, the former U.S. head of Toyota who arrived at Chrysler in 2007, as deputy CEO. Frank Klegon, the company's product development chief, and top marketing executive Steve Landry both left the company.