Rome – Fiat Chrysler Automobiles prepares for the premature end of the Sergio Marchionne era
The 66-year-old native Chieti from Italy, who has been under medical care for a few weeks, will not return to his CEO's roles in the Italian-American Car manufacturer or racing car manufacturer Ferrari NV, people who were familiar with the thing said Bloomberg. The executives of both companies prepared replacements for him on Saturday, people who asked not to talk about confidential matters said.
Marchionne's state of health, which the company has not discussed extensively, is accelerating the timeline for a successor plan early next year that has already been seen as a watershed moment for the company. Marchionne took care of a dilapidated Fiat more than a decade ago and was closely associated with the company's success. Who should lead the company is just the first of a series of decisive decisions – such as whether he wants to remain independent – to the Chairman John Elkann.
Elkann, heir to the founding family Agnelli, said an internal candidate will replace Marchionne Fiat Chrysler. CFO Richard Palmer, Europe CEO Alfredo Altavilla, and the Jeep and Ram brand Mike Manley are the best candidates, after the people who are familiar with the matter. On Friday, meetings took place in Turin to elect his successor.
Marchionne, known for his crumpled sweaters and nonstop work habits, is one of the longest-serving CEOs in the auto industry. He was named the fifth Fiat boss in two years in 2004. He succeeded in recovering the automaker, which had lost more than 6 billion euros in 2003, by cutting costs and the dismissal of workers and then looking for a partner.
With the acquisition of Chrysler in 2014 completed a five-year process, he gave Fiat the global scale needed to survive. As the seventh largest automaker in the world, the company may not have the size it needs to compete in an industry reinvented by the advent of autonomous driving and electrification. For nearly a month he has been asking questions about Marchionne 's health – his last. English: www.euro.who.int/mediacentre/pr/200…guage=German […] His public appearance was June 26, when he spoke at an event in Rome. The company said on July 5 that the CEO had to undergo an operation on his right shoulder and "a short convalescence" was required.
The three groups controlled by the Agnelli family are to designate internal successors for Marchionne's jobs. Louis Camilleri, a former chairman of Philip Morris International Inc. and a member of the Ferrari board, will be named CEO, with Elkann acting as chairman, people said. The truck and tractor manufacturer CNH Industrial NV is to designate one of its existing board members as chairman.
At Fiat Chrysler, Elkann is likely to divide Marchionne's duties among his closest associates, with one assuming the role of CEO. Marchionne was also head of the Fiat Chrysler North American unit.
It will not be easy to fill his shoes. The executive is considered one of the industry's most capable turnaround artists, not only rescuing Fiat from collapse, but later acquiring Chrysler, who probably would not have received US government support for his 2009 bankruptcy without the intervention of his Italian
Marchionne is known for taking a break, often sleeping on the couch of his private jet while traveling overnight between Turin, Detroit and London, the three houses of the Automobile Group. Weekend meetings were a common routine for the manager, who preferred black sweaters to smart suits, so he did not have to waste any time in the morning to decide what to wear. He drank quantities of espresso daily and was a chain smoker before leaving the store a year ago.
In recent months, he was preparing for a slowdown, but first wanted to complete the five-year plan to free the car manufacturer of industrial debts. Make it financially stronger and survive the next downturn. "I'm a fixer, I can not stop until something is finally fixed," he said.
Marchionne has further upset the industry with controversial upheavals has not always endeared him to his counterparts. Chrysler no longer put most cars on SUVs in 2016, a decision that was followed by Ford Motor Co. In Europe, Marchionne has withdrawn from mass production and restructured the plant in Turin, which annually produced around 500,000 cars, in the 1960s to a niche manufacturer of Alfa Romeo and Maserati SUVs. [March59006] As late as March, Marchionne was at the Geneva Motor Show among executives who refused to accept a suggestion from German rivals a statement that reaffirms the industry's commitment to diesel technology. "They got no support from the others and were left by themselves," he said.
He has also focused on brand building, turning Ferrari into a separate trading company, a step that has tremendous value for the Agnelli family and other shareholders. Jeep, which produced about 300,000 cars in 2009, is today a global brand that will sell about 2 million vehicles this year after expanding into Europe, China, India and South America.
Fiat Chrysler and Ferrari share a majority shareholder in Exor NV, Elkann's holding company. Exor also controls CNH Industrial NV, the truck and tractor manufacturer where Marchionne is chairman
CNH Industrials's board is expected to meet on Saturday to designate a replacement for Marchionne, the people said. Representatives from Fiat Chrysler and Ferrari did not comment while a representative from CNH Industrial was not immediately available.
Ferrari will call Louis Camilleri, a board member and former chairman of Philip Morris International Inc., its CEO, Automotive News, on Friday citing a source familiar with the decision.
Fiat Chrysler denied on Friday a report on the website Lettera43.it that Elkann would convene top managers in Turin on Saturday to discuss the temporary redistribution of his powers. The company's shares listed in Milan fell by 2.3 percent.
On Wall Street FCA shares were stable all week. They fell 1 percent and closed at $ 19.32 on Friday
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The Italian-American automaker is scheduled to release second-quarter results on July 25. Palmer – Seen by some investors as the prime candidate for the CEO job – will probably lead the conference leadership, the people familiar with the matter said earlier.
Marchionne has been talking for years about the industry's need for more consolidation. His plan to establish General Motors, the world's largest automaker, was rejected in 2015. Since then, he and Elkann have decided to focus on the more lucrative SUVs and higher-margin brands.
"This business, if you really want it Well, that's all elaborate," said the CEO in an interview with Bloomberg News in Detroit in January. "I'm tired, I want to do something different."
& # 39; No scripts & # 39;
On June 1, Marchionne presented his latest plan for the carmaker. His concluding remarks were addressed to his successor.
"The origins of FCA are a group of people from Fiat and Chrysler who have faced the toughest situations in the last 10 to 15 years, facing the danger of losing their dignity by doing their job lost, "said Marchionne.
Can Marchionne leave a script or statement? The answer is that there is no script or instruction. FCA is a culture of leaders and co-workers who were born out of necessity and work without grades, that's the only way we know.
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August 24, 2019
August 24, 2019