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Chrysler's Communications Chief Jason Vines Resigns (Update2)

By Jeff Green

Dec. 10 (Bloomberg) -- Chrysler LLC's top communications executive, Jason Vines, resigned from the money-losing automaker four months after it was purchased by private-equity firm Cerberus Capital Management LP.

Vines, vice president of public relations, is stepping down today. Communications will now report to Nancy Rae, senior vice president of human resources, and David Barnas will handle media relations, the automaker said in a statement.

The departure adds to the management upheaval since DaimlerChrysler AG announced the sale to Cerberus in May. Heads of purchasing and marketing were among those who left before the Aug. 3 transfer. Under Cerberus, Chrysler has named a new chief executive officer, co-president and chief of Asian operations.

``We are taking every opportunity to realign functions in a more holistic manner that allows us to more effectively drive company strategy,'' said CEO Robert Nardelli in the statement.

Mike Aberlich, who directs corporate and internal communications, will retire at the end of this year, Chrysler said. Vines, 47, will help with the transition through December.

Vines came back to Chrysler in 2003 after serving as public relations chief at Ford Motor Co. and the North American arm of Nissan Motor Co. He re-joined as it was completing a three-year restructuring under DaimlerChrysler.

A return to losses last year helped spark DaimlerChrysler's decision to sell the Auburn Hills, Michigan-based subsidiary. Nardelli told employees last week that the automaker's losses may rise to $1.6 billion this year, people with direct knowledge of his statements said.

Losses

Under DaimlerChrysler, now Daimler AG, Chrysler had a 2006 loss of $680 million using international accounting standards, or $1.5 billion using traditional U.S. accounting standards.

With the sale to Cerberus, Chrysler is no longer required to report financial results.

Chrysler has announced 25,100 job cuts since February and plans to eliminate four models by year's end as part of its effort to return to profit. The automaker also intends to close a Delaware sport-utility vehicle plant and eliminate shifts at five other factories.

Its U.S. sales fell 3.5 percent through November. Gasoline averaging $2.81 a gallon in 2007 has damped demand for the light trucks that make up 75 percent of Chrysler's sales.

Vines was at Ford in 2000 and 2001, when then-CEO Jacques Nasser had to defend the company against allegations that faulty Firestone tires on Explorer sport-utility vehicles led to deaths. Vines left after Nasser was ousted in October 2001.

Before joining Ford, he was the top North American public relations strategist at Tokyo-based Nissan, from 1998 to 2000. During that time, French automaker Renault SA bought a controlling share of Nissan and dispatched Carlos Ghosn to lead its revival from near bankruptcy.

Vines began his career at the former Chrysler Corp. in 1983 and worked there for 15 years until leaving for Nissan.

To contact the reporter on this story: Jeff Green in Southfield, Michigan at jgreen16@bloomberg.net

Last Updated: December 10, 2007 12:09 EST

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