The World: Detroit - New Chrysler chief to slash $1.24 billion adspend

Chrysler's roster agencies and media owners are braced for drastic cuts in the US car giant's $1.24 billion adspend after Bob Nardelli was appointed as the company's chief executive.

Chrysler reported a loss of almost $2 billion in the first quarter of 2007. In a similar period last year, the company posted pre-tax earnings of $857 million.

Onlookers expect Nardelli to take a tough approach to Chrysler's ad budget, like he did at Home Depot. During his six years there, he cut $100 million from the retailer's much smaller adspend.

"While Nardelli was intrigued with marketing, he never really figured it out," a former Home Depot manager said. "He views marketing as another expense to cut, as opposed to an investment to grow the business."