DETROIT – Chrysler LLC will likely get a new chief executive and board of directors appointed by Italy’s Fiat SpA and the U. S. government, if Chrysler and Fiat follow through on their plans to form an alliance, Chrysler’s current CEO told employees in a letter.

Chrysler Chief Executive Officer Bob Nardelli said a new board of directors will be appointed by the federal government and Fiat once a deal is completed. The majority of the directors will be independent.

“Upon successful completion of the alliance, a board of directors for Chrysler will be appointed by the U.S. government and Fiat,” Nardelli said in the letter, a copy of which was obtained by Dow Jones Newswires.

Nardelli’s Letter

“Upon successful completion of the alliance, a board of directors for Chrysler will be appointed by the U.S. government and Fiat.”

“The majority of the directors will be independent (not employees of Chrysler or Fiat). The board will have the responsibility to appoint a chairman. The board also will select a CEO with Fiat’s concurrence,” he said.

He added that the board “will have the responsibility to appoint a chairman” and that the board also will select a CEO with Fiat’s concurrence.”

Nardelli’s comments clarify speculation on who will control Chrysler if a merger deal with Fiat is completed and what role Nardelli might play in that new company.

Earlier this week, Nardelli’s future came into question after Fiat CEO Sergio Marchionne it was possible he could serve as Chrysler’s CEO if the two companies join in an alliance.

Nardelli was installed as Chrysler’s CEO, Cerberus Capital Management LP, which acquired the auto maker in 2007. The private-equity firm is expected to give up all or most of its equity in Chrysler under its reorganization, which opens the door for Fiat to name new management.

Nardelli’s turn as head of Chrysler was seen as a chance for the executive to rehabilitate his reputation. He joined Chrysler after a rocky stint as CEO of Home Depot Inc. He had tense relations with shareholders of the home-improvement chain and left amid controversy over his pay.

“Bob is doing whatever it takes to save Chrysler. He is fully engaged,” Chrysler spokeswoman Lori McTavish said.

Republican Sen. Bob Corker of Tennessee, one of the staunchest critics of U.S. auto makers, said Wednesday he would support a revamped Chrysler controlled by European executives, adding such an arrangement might be the only way to ensure the company’s survival. “I’ve always assumed that Fiat would totally control this deal,” he said.

Sen. Debbie Stabenow (D., Mich.), one of the U.S. auto industry’s top allies in Washington, also said she wouldn’t oppose Marchionne becoming Chrysler’s CEO.

Chrysler has been surviving on $4 billion in loans from the federal government and is racing to secure new union cost-cutting deals, reduce its debt and ink a Fiat partnership before the federally mandated April 30 deadline.

The Obama administration has said it would not provide Chrysler additional access to low-interest loans if the requirements are not met which could result in the third-largest U.S. auto maker filing for bankruptcy protection.

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