Marchionne no longer behind the wheel at Fiat and Ferrari
Sergio Marchionne (66), charismatic number one at Fiat-Chrysler (FCA) and Ferrari, among others, had to be replaced behind the wheel suddenly last weekend. His health deteriorated rapidly beyond hope, due to complications after what was said to be a minor surgery to the shoulder, end of June.
‘Unthinkable a few hours before’
Marchionne himself told earlier he wanted to retire from FCA next February, but these circumstances – according to Italian media the patient doesn’t react anymore – made he had to be replaced immediately. John Elkann, grandson of Gianni Agnelli and CEO of the Agnelli family holding Exor controlling Fiat, CNH and Ferrari, spoke about a situation “that was unthinkable just a few hours before”.
In 14 years time the Italian-Canadian Sergio Marchionne ‘remodeled’ Fiat thoroughly with the fusion in 2009 with American Chrysler, and by detaching crown jewel, Ferrari, and restructuring the heavy machinery and truck business in 2011, renaming it in CNH Industrial.
Before he joined the Fiat group, Marchionne worked for the Swiss SCS Group, world leader in the inspection and certification of products, where he was still chairman of the board too.
Replaced by four people
Being a very versatile person, his responsibilities go to different people: Mike Manley (FCA), Louis Carey Camilleri (Ferrari), Suzanne Wood (CNH Industrial) and Peter Kalantizis as interim president at Swiss SCS Group.
At FCA Marchionne is replaced as CEO by Jeep-boss, Mike Manley (54). At American car maker, Chrysler, the British manager became CEO of Jeep in June 2009, before the fusion with the Fiat group in 2014, and the RAM pick-up brand in 2015.
Jeep good for 70% of FCA’s benefits
After the crisis in the American automotive sector in 2008, the historic Jeep brand began a remarkable comeback under the guidance of Manley, who reoriented the brand toward the very important SUV market. Manley was told to be very close with Marchionne.
According to multinational investment bank, Morgan Stanley, Jeep will account on its own for 70% of the benefits of the FCA group this year with a target of 1,9 vehicles compared to 1,4 million in 2017.
Ex-Phillip Morris boss
At Ferrari John Elkann will take up Marchionne’s role as chairman of the board, while Louis Cary Camilleri is in charge of the daily management. Camilleri was from 2002 until now CEO at Philip Morris, America’s largest tobacco manufacturer with iconic brands, as Marlboro and linked to Ferrari as one of the main sponsors of the Scuderia.
Ferrari, which is limiting its production voluntary to keep the exclusivity of the brand, has realized in 2017 a turnover of 3,417 billion euro (+10%) and a benefit of 537 million euro (+34%).