Fiat chief quits after failing to get top job

Fiat Chrysler’s European chief has resigned after being passed over to replace ailing Sergio Marchionne as CEO of the group, according to people familiar with the matter.

The departure of Alfredo Altavilla, chief operating officer for the region, 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 was a close aide to Marchionne and considered one of three leading candidates for the top job, with Manley and chief financial officer Richard Palmer. Manley was selected on Saturday as the new CEO, only days ahead of the company’s July 25 results presentation.

The resignation raises the stakes for Manley when he faces investors on Wednesday. He has already faced pressure to show he is capable of moving the firm forward. Now he will face questions on whether he can hold together the management team or face more turmoil in executive ranks.

A Fiat Chrysler spokesman was not available for comment.

Manley was set to meet with Fiat Chrysler’s top managers in Turin, Italy, on Monday, the people said. The meeting marks the beginning of his tenure in the wake of a man credited with saving both Fiat and Chrysler and increasing shareholder value 10-fold. / Bloomberg