Several news agencies are reporting that Sergio Marchionne, the colorful chief executive who returned Fiat, and then a combined Fiat Chrysler, to profitability, might not end the day as CEO.
Marchionne, who took the helm of Fiat in 2004, was due to retire next April, and recently unveiled the automaker’s upcoming five-year product plan. Two sources told Reuters that Marchionne suffered “massive” complications from a recent shoulder surgery. According to those sources, the boards of Fiat Chrysler, Ferrari, and CNH Industrial are all meeting Saturday to name a successor.
The Associated Press (via Detroit Free Press) claims the surgery took place in Switzerland three weeks ago.
Though Marchionne planned to step down in early 2019 — a move timed to coincide with the elimination of FCA’s longstanding debt — the 66-year-old executive planned to stay on as head of the newly spun-off Ferrari for some time after. According to sources who spoke to Bloomberg, board member Louis Camilleri will likely take the CEO position at the Italian sports car maker, with John Elkann (heir of the controlling Agnelli family) serving as chairman.
Marchionne’s replacement at FCA will come from within the company, Elkann has already stated. Sources claim his duties will be split among several individuals, with one serving as CEO.
Among the most likely contenders for the top position are Jeep brand chief Mike Manley, CFO Richard Palmer, and FCA Europe head Alfredo Altavilla.
Since the acquisition of Chrysler by Fiat, Marchionne’s habit of plain speaking and wearing only sweaters set him apart from the industry’s polished automotive CEOs. During this time, Marchionne built Jeep into a global brand and a financial juggernaut, with the brand now valued higher than the company itself. FCA singled out Jeep, Ram, and the Alfa Romeo and Maserati brands in its latest five-year plan as the automaker’s dominant global brands, relegating Chrysler, Dodge, and Fiat to smaller, more regional duties.
[Image: Fiat Chrysler Automobiles]
Well, that sucks. Let’s hope he gets better.
I’ll be following this story, not because I care so much about Fats, Jeeps or Chryslers, but because I’m considering a shoulder replacement myself.
Yeah, I’m wondering what could have happened?
Most likely suffered a pulmonary embolism (ie threw a clot).
@Wheatridger Nuts to that pal. I’d rather wear a sling or stand like Napoleon. Odds of a big problem from major surgery are ballpark 500/1 to 10000/1. So go take dice, hold one in each hand, face the mirror and say: “AAAhhhhhgggrrrr!” Bunch your shoulders in as best you can. The chances of it are right in your hand.
Here is what is going to happen-
No job security for the new guy. In the next 12 to 18 months Hyundai will buy RAM for sure, maybe Jeep. Might have to take Chrysler as part of the deal…but Hyundai will dump Chrysler.
I’m sure the Chrysler and Dodge brands would survive if the Chinese get them instead of Hyundai.
Good luck, Sergio. Hopefully Chrysler and Dodge will survive.
*insert sad face with single tear emoji here*
This made me sad :(
Me too.
I wish him the best in his recovery. As much as we like to joke about him, I believe he did a good job overall and again, I wish him well.
^ This, to the billionth power!
I hope not but it doesn’t sound good with the urgency around replacing him. I’ve always gotten a kick from his persona. It’s a reminder of how things can go bad with even a routine procedure.
Marchionne’s Condition
Marchionne’s health has “worsened significantly in recent hours,” and he will be unable to return to work, the company said. The executive was set to retire in April 2019. His illness accelerated the timeline for a succession decision that was already seen as a crossroads for the company. Naming Manley to run the company is just the first of a number of pivotal choices — like whether to remain independent — facing Chairman John Elkann, heir to the founding Agnelli family.
“I am profoundly saddened to learn of Sergio’s state of health,” Elkann said in a separate statement. “It is a situation that was unthinkable until a few hours ago, and one that leaves us all with a real sense of injustice.”
-Bloomberg
Doesn’t sound good at all :(
Damn. Here’s hoping he can make a Chrysler-style turn-around health wise.
A terrible thing to happen and I wish him to recover. As far as the Marchionne era of FCA goes, I don’t think he really moved the needle much, beyond some good product improvements at Jeep and some insane Challenger/Charger hellcat stuff. Did he introduce any all new platforms?
Several. Off the top of my head, the Giorgio platform (Alfa Romeo Giulia + future models), the CUSW platform (Jeep Compass, Renegade and Cherokee, as well as the defunct Chrysler 200 and Dodge Dart), and the possibly-related platform that the Pacifica is on.
Get well Sergio ! As has been mentioned here before a great CEO..
While not his biggest fan, I wish the man a swift recovery and future good health.
Wow. I’m no fan of Sergio’s but this is not good news. I’m assuming he had rotator cuff surgery – several friends of mine have had it, and my sister, too, and even the best outcome includes a months-long recovery period. I’m hoping his prognosis improves, and he gets well soon.