Robert Nardelli, formerly the embattled chief executive of Home Depot, is the new chief executive of Chrysler.

The company's new private equity owner, Cerberus Capital Management, is promoting it as the New Chrysler, and this appointment is truly a break with Detroit's past.

For one, Cerberus is turning to an executive with no automotive experience. Before running Home Depot, Nardelli was president and chief executive of G.E. Power Systems. To be sure, Ford Motor's new chief executive, Alan Mulally, also lacks an automotive background, but he arrived from Boeing and has had experience with unionized manufacturing.

The move is also surprising because all indications until now had been that Tom LaSorda, a highly regarded industry veteran, would remain as chief executive. And Cerberus had another auto executive star in its stable: Wolfgang Bernhard, former chief operating officer of Mercedes-Benz and a former Volkswagen executive.

But Bernhard turned down an offer to be chairman of Chrysler, according to the company's statement, because of "personal and family reasons."

Nardelli arrives with some baggage. He was forced out of Home Depot in January amid shareholder unrest over the company's sluggish stock price and his rich compensation. He came under further fire because of its $210 million exit package.

As head of a newly private company, Nardelli will not have to disclose his pay or answer to pesky activist shareholders. But his compensation could become an issue as Chrysler enters contract negotiations with the United Automobile Workers union. U.A.W. officials have been critical of auto executives' compensation in the past. And Nardelli will have to answer to Cerberus, which has a reputation for changing managers faster than George Steinbrenner in the 1980s if there are not signs of improvement quickly.

Chrysler, which is struggling to return to profitability, faces many challenges. If Nardelli succeeds, he will certainly be amply rewarded. The New York Times reports that all his compensation will be tied to the performance of Chrysler.

The Detroit News says that Cerberus' publicity-shy founder and chief executive, Stephen Feinberg, hired Nardelli personally last week.

What apparently appeals to Feinberg is Nardelli's still bright glow as a onetime star at General Electric under Jack Welch. General Electric's Six Sigma management system continues to have immense cachet in corporate America even after a few stumbles by G.E. alumni.

"Bob has a proven track record of success and an unwavering focus on performance, and brings deep operational experience and a broad industry background to Chrysler.  His background in operations will provide valuable knowledge as we continue Chrysler's turnaround," said LaSorda, who will remain as president and vice chairman.