Cerberus Would Want Room and Board At a Combined GM/Chrysler

If a merger were to occur between Chrysler and GM, Cerberus Capital Management would want to keep a stake in the combined company and would press for some changes in the top management ranks. Many analysts have expressed shock that Rick Wagoner has maintained his perch at the top of the company given its decline in fortune over the past few years. In Wagoner's defense, the question is asked "Who could have done any better?" Additionally, Wagoner has handed over more power to Fritz Henderson, so the case can be made that some management changes have been made already.

What might Cerberus ask for if the merger goes through? I would expect to see a few new faces on the board and those new members would probably shake up the current chummy atmosphere between the board and executives. Let's also not forget one of Chrysler's potentially greatest gifts besides its dowry: Jim Press. I'm sure that Mr. Press could hit the eject button, but I doubt he would. How could GM accommodate a rock star executive like Jim Press? My best guess is that while the board changes would be immediate, Mr. Press would be brought on in a similar way that Bob Lutz was. Heck you can even make up a position if you wanted to. Then perhaps a year or so down the line Wagoner would step down, Henderson would rise to the top and Press would be promoted as well. As for Nardelli? I don't think that he would stay on and I would take the money and run.

source: wsj