The dynamo who saved Fiat and Chrysler
Charismatic and demanding leader dies at 66 after surgery
MILAN— Sergio Marchionne, a charismatic and demanding leader with Italian and Canadian citizenship, who engineered two long-shot corporate turnarounds to save both Fiat and Chrysler from near-certain failure, died Wednesday. He was 66.
The holding company of Fiat’s founders, the Agnelli family, announced Marchionne’s death after complications from surgery in Zurich.
“Unfortunately what we feared has come to pass,” Fiat heir John Elkann said. “Sergio Marchionne, man and friend, is gone.”
Marchionne built the dysfunctional companies into the world’s seventhlargest automaker almost by personal force of will, living on a corporate jet crossing the Atlantic to push employees to accomplish what most people thought was impossible amid a devastating global recession.
Born in 1952 in Italy, Marchionne came to Canada when his parents emigrated.
He received a bachelor of arts from the University of Toronto, a law degree from Osgoode Hall Law School at York University and two degrees from the University of Windsor — master of business administration and bachelor of commerce.
Marchionne began his business career in Canada working at a number of companies before joining Algroup, headquartered in Zurich, where he eventually become its chief executive officer.
He later had several other high-ranking jobs at various European companies before joining Fiat.
Marchionne had revived Fiat by 2009 when he was picked by the U.S. government to save U.S.-based Chrysler from its trip through bankruptcy protection after being owned by a private equity company.
“It’s highly unlikely that Chrysler would exist today had he not taken that gamble,” said Autotrader.com analyst Michelle Krebs.
Marchionne met most of his goals, even though at times he was doubted by nearly everyone in the automobile business.
But he didn’t live long enough to complete his last two goals: Personally hand over the reins of Fiat Chrysler Automobiles to a hand-picked protegé and lay out plans for transforming supercar maker Ferrari. Marchionne had shoulder surgery this summer, and the company said last weekend that complications meant he would not be able to return.
The manager, known for his folksy, colorful turns of phrase and for his dark cashmere sweaters no matter the occasion, was the darling of the automotive analyst community.
Even when expressing doubts at his audacious targets, they expressed admiration for his adept deal-making.
That included getting GM to pay $2 billion to sever ties with Fiat and the deal with the U.S. government to take Chrysler without a penny down in exchange for Fiat’s small-car technology.
Marchionne joined Fiat after being tapped by the Agnelli family to save the company.
Other key corporate moves included the spinoff of the heavy industrial vehicle and truck maker CNH and of the Ferrari supercar maker.
Both deals unlocked considerable shareholder value for Agnelli family heirs led by Elkann.
As Marchionne’s health failed following surgery, a clearly emotional Elkann delivered what amounted to an impromptu eulogy and message of gratitude to a man he called his mentor.
“He taught us to think differently and to have the courage to change, often in unconventional ways, always acting with a sense of responsibility for the companies and their people,” Elkann said over the weekend.
“He taught us that the only question that’s worth asking oneself at the end of every day is whether we have been able to change something for the better, whether we have been able to make a difference.”
Marchionne was divorced. He is survived by his companion, Manuela Battezzato, and two adult sons.