Wolfgang Bernhard, the restructuring expert who helped to turn around Chrysler five years ago, has signed an advisory contract with Cerberus Capital Management, signficantly strengthening the private equity group’s hand in the bidding for the US carmaker.

Mr Bernhard, who was chief operating officer at Chrysler, signed the contract for a full-time role recently, according to several people familiar with the situation. The advisory mandate further helps the chances of Cerberus, already one of the favourites to buy Chrysler from DaimlerChrysler, its German parent.