Aug. 5 (Bloomberg) -- Chrysler LLC's new owner, Cerberus Capital Management LP, picked former Home Depot Inc. Chief Executive Officer Robert Nardelli as CEO, succeeding Tom LaSorda, two people with direct knowledge of the plan said.

Nardelli, 59, a Cerberus adviser, also will become the automaker's chairman, said the people, who didn't want to be identified before the move is announced later today. LaSorda will become president, while Chief Operating Officer Eric Ridenour will leave Chrysler and won't be replaced, the people said.

The leadership shift puts Cerberus's stamp on Chrysler as it begins operating the third-largest U.S.-based automaker as a private company. Cerberus closed the deal three days ago to buy an 80.1 percent stake in Auburn Hills, Michigan-based Chrysler from DaimlerChrysler AG for $7.4 billion.

Nardelli was picked because he brings a fresh perspective to Chrysler and the automotive industry, the people said. He joined New York-based Cerberus after being ousted at Home Depot in January amid investor criticism for earning $225 million while the company's stock fell 7.9 percent in his six-year tenure.

Cerberus spokesman Peter Duda had no comment, and he said Nardelli and LaSorda were unavailable. LaSorda, 53, who served as CEO since 2005, will report to Nardelli.

Former Chrysler executive Wolfgang Bernhard, a Cerberus adviser who worked on the automaker's purchase and was speculated to be named chairman, wasn't offered an executive role, the people said.

To contact the reporter on this story: Jeff Bennett in Southfield, Michigan, at jbennett17@bloomberg.net

Last Updated: August 5, 2007 22:41 EDT