FCA Europe chief to quit
PASSED OVER
MILAN • Fiat Chrysler
Automobiles NV’s European chief has resigned after being passed over to replace ailing Sergio Marchionne as chief executive of the group.
The departure of Alfredo Altavilla, chief operating officer for the region, was confirmed Monday by the company in a statement. His exit deprives new Fiat Chrysler CEO Mike Manley of crucial management experience as he tries to steady the ship following the sudden loss of Marchionne, who was forced to relinquish his post of 14 years due to declining health.
Altavilla, 54, was a close aide to Marchionne, having overseen Fiat Chrysler operations across the globe. He was considered one of the three leading candidates for the top job, along with Manley and chief financial officer Richard Palmer. Manley was selected Saturday as the new CEO, only days ahead of the company’s July 25 results.
Altavilla’s resignation raises the stakes for when Manley addresses investors for the first time Wednesday as CEO. He was already facing pressure to show he was capable of moving the ItalianAmerican automaker forward without Marchionne. He now has the challenge of proving he can unify veteran managers around him and prevent further turmoil in the executive ranks.
Altavilla will stay on until the end of August, the company said. Manley will be interim Europe chief, after taking direct oversight of the North American operations from Marchionne over the weekend. CFO Palmer takes on added responsibility for business development.
Manley was set to meet with Fiat Chrysler’s top managers in Turin, Italy, on Monday for a group executive council meeting, the people said. The gathering marks the beginning of his tenure following Marchionne, who is credited with saving both Fiat and Chrysler during his 14-year tenure and increasing shareholder value 10-fold.
Fiat Chrysler began trading on Monday for the first time since it became clear Marchionne would be unable to return to work following shoulder surgery the automaker announced. Italian news agency Ansa said his condition is “irreversible,’ and he is in intensive care in a Zurich hospital following complications from shoulder surgery.
Fiat fell 2.1 per cent to 16.06 euros at 1:53 p.m. in Milan, giving the company a market value of about US$30 billion. Supercar maker Ferrari NV, which was spun off from Fiat during Marchionne’s tenure, dropped 4.4 per cent after falling as much as 5.7 per cent earlier. CNH Industrial NV, another Fiat spinoff, declined 2.3 per cent, while Exor NV, the holding company for Fiat’s founding Agnelli family, was down 3.8 per cent.
Manley faces “a difficult baptism” on the Wednesday earnings call, Bernstein & Co. analyst Max Warburton said in a research note.