On August 3 Chrysler’s sale to Cerberus Capital Management was consummated. Cerebrus paid about $7.4 billion for 80 percent of the company, ending a rocky nine-year “marriage of equals” with the former Daimler-Benz company, which had paid $33 billion for the privilege. The last time Chrysler made a profit was in 2005, when it made $1.8 billion. A dismal 2006 with a loss of $618 million led to its eventual sale.

Chrysler announced that it will return to using its traditional pentastar logo and is replacing signage. The sale also makes Chrysler the first U.S. auto manufacturer held privately since 1956, when Ford went public.

The next shoe to drop was the hiring of Robert (Bob) Nardelli, who has been named chairman of the New Chrysler Group. Nardelli left Home Depot back in January under pressure from stockholders. He was averaging $25.7 million per year compensation and received an amazing $210 million severance package. According to early unconfirmed reports, Nardelli took the new job at Chrysler for $1 per year, with any additional income based on financial improvements.

As a Detriot outsider, union leaders are nervous about Nardelli, who is said to have demonstrated an aggressive, headstrong, arrogant style in the past that has alienated both union and white-collar employees. Some rumors have Chrysler Vice-chairman and President Tom LaSorda, who now is number two under Nardelli, quitting Chrysler as a result. However, LaSorda’s public statements don’t show this. LaSorda has a strong automotive background and seems to do well with the unions. Union cooperation is essential to Chrysler’s success, so this is an important piece of the puzzle.

Both Nardelli and LaSorda seem to agree on the major goals for saving Chrysler: Cutting excess production capacity, raising product quality and expanding in international markets. Chrysler is saddled with about $18 billion in retiree costs, so they still have to cut costs and maximize profits.

We hope everybody can get along and get on with this immense task at hand.