US carmaker Chrysler has appointed Bob Nardelli, the former boss of the DIY store chain Home Depot, as chairman and chief executive.
The surprise move comes days after the private equity firm Cerberus Capital Management took control of the loss-making carmaker, acquiring an 80% stake from parent Daimler for $7.4bn (£3.6bn), confounding fears that turmoil in debt markets might derail the deal.
Mr Nardelli, 59, is best known for his record-breaking $210m severance package, including $20m in cash, he received after his abrupt resignation from Home Depot in January.
He is believed to have taken the Chrysler post for a salary of only $1, with further pay linked to the carmaker's performance.
The appointment of the controversial Mr Nardelli caught industry observers on the hop, as Cerberus chairman John Snow said only last week that Chrysler's management would stay intact.
Mr Nardelli is a former General Electric high flyer who lost out to Jeffrey Immelt to succeed Jack Welch as chief executive. He is credited with overhauling Home Depot's purchasing and technology systems as well as its management structure, but came under attack from shareholders for his excessive pay. Some say his military style and culls of under-performing staff instilled a culture of fear, which led to worsening customer service and a stagnating share price.
Chrysler's current chief executive, Tom LaSorda, will stay on as president and vice-chairman and continue to lead talks with the United Auto Workers, and act as a consultant to Cerberus.
As part of the shake-up, Chrysler's chief operating officer, Eric Ridenour is leaving and his post will not be filled. Former Chrysler executive Wolfgang Bernhard, a senior adviser to Cerberus, had been widely tipped to be chairman. He was offered a position with the carmaker but chose not to accept.
Mr Nardelli said he was confident his team would "continue the momentum of Chrysler's recovery and return this great American icon to a path of global growth and competitiveness".
Mr LaSorda lauded the new head's "proven track record of success and an unwavering focus on performance" and said his operational experience would be helpful to Chrysler's turnaround. The carmaker lost $680m last year and predicted it would remain loss-making until next year. It is in the middle of a cost-cutting project to cut 13,000 jobs and close plants.
