Fiat Group CEO Sergio Marchionne is poised to become the CEO of Chrysler LLC when a revised board is installed following the completion of the alliance with Fiat according to informed sources. The Chrysler board is set to be revamped with the existing appointees being ditched to reflect the waning interests of the current two shareholders. The news suggesting Marchionne will become CEO has been reported by Automotive News Europe citing sources close to the discussions

Marchionne has been in the USA a number of times in recent months, becoming deeply involved in the negotiations with Chrysler's creditors and unions as well as appearing before the US treasury department' Auto Task Force. He also combines his position as Fiat Group CEO with that of CEO of Fiat Group Automobiles - the vehicle manufacturing division that includes Fiat, Lancia, Alfa Romeo, Fiat Professional and Abarth - a position he has held since the departure of the last occupant of the post, Herbert Demel, in 2005.

At present Bob Nardelli holds the joint roles of Chairman and CEO of Chrysler LLC, he was appointed to the two positions in August 2007 by investment firm Cerberus Capital Management who currently hold an 80.1 percent stake in the American carmaker. However Cerberus got in well out of their depth in buying Chrysler and are looking to exit their investment and write down most of their shareholding and loans. Prior to his appointment at Chrysler Nardelli had a controversial tenure as CEO of Home Depot; he has also survived in the Chrysler job unlike General Motors CEO Rick Waggoner who was unceremoniously forced to quit by the Obama administration at the end of last month. GM is also now being propped up by loans from the US Treasury Department.

Under plans being drawn up by the US Treasury Department the positions of Chairman and CEO of Chysler will be split up. While the Italo-Canadian Marchionne is reported by ANE to be a likely candidate for the CEO's job, an American will be appointed Chairman to appease the Auto Task Force and American sentiment that is wary of Fiat's takeover of Chrysler. Fiat could have other representatives on a new seven man board with the idea being floated that the Auto Task Force could also propose board members with these being drawn down as Fiat raises its stake in Chrysler. It is believed that Fiat will take an initial 20 percent stake, when the first Fiat engine is licensed in the US, with this rising in increments of 5 percent to 35 percent, which will be triggered when the first Fiat based car is exported from the US and sold abroad.