Sergio Marchionne
The Fiat Chrysler Automobiles CEO died last week at the age of 66
Tributes to Fiat Chrysler chief
Tributes have been paid to long-time Fiat Chrysler Automobiles (FCA) boss Sergio Marchionne, who died last week after suffering serious complications following shoulder surgery.
The 66-year-old Italiancanadian had headed Fiat since 2004 and was the driving force behind its merger with Chrysler and the subsequent spin-off of Ferrari, which he also headed.
Italian president Sergio Mattarella said: “Marchionne wrote an important page in the history of Italian industry.
“As leader of Fiat, he went through years of very deep and radical transformation of markets, production systems, financial strategies and trade union relations.”
Marchionne had been planning to step down from his FCA role next April and in June he led the presentation of the group’s next five-year plan.
Briton Mike Manley, the boss of Jeep and Ram, was named the new FCA Group CEO shortly before Marchionne’s death (see separate story, right).
“Sergio was a very special, unique man and there is no doubt he’s going to be sorely missed,” said Manley.
Marchionne joined the board of then-struggling Fiat in 2003 with no automotive industry experience but with a reputation for turning around loss-making firms. He was made CEO the following year following the death of chairman Umberto Agnelli. The then Ferrari boss Luca di Montezemolo was given the role of Fiat chairman, which prompted Fiat CEO Giuseppe Morchio — who had expected the job — to quit. Montezemolo was quick to install Marchionne as new Fiat CEO.
In 2009, Marchionne capitalised on a ma jor opportunity to grow Fiat by acquiring a stake in Chrysler, which was in dire straits following a disastrous alliance with Daimler and the 2008 financial crisis.
Fiat took a 20% stake in Chrysler in 2009 and Marchionne increased that to 58.5% in 2012. Two years later, Fiat bought out the remaining shares, leading to the creation of Fiat Chrysler Automobiles. The deal gave FCA greater access to the North American market and the scale to compete against global rivals.
At the same time, Marchionne spun off Ferrari into an independent division, although he remained in charge of the sports car firm.
Under Marchionne’s leadership, FCA focused on its premium brands, in recent years growing Jeep, Alfa Romeo and Maserati through the development of new SUVS and other models. But Fiat itself has struggled and in Europe the brand will soon focus on electrified city cars.
Marchionne was known for his outspoken and opinionated management style, including openly talking about finding another car firm to merge with.
When Marchionne unveiled FCA’S next five-year strategy in June, he described plans for further expansion of the Jeep, Alfa Romeo and Maserati brands, and heavy investment in electrified technology.
At that event, Marchionne responded to financial analysts who questioned why he had developed a plan he wasn’t intending to stay to implement. Describing FCA leaders as “survivors” who had faced losing their jobs before the Fiatchrysler merger, Marchionne said his legacy would be the culture he instilled in the group.
Noting that much of the car industry is focused on method and process, Marchionne said that although such things were important, “at FCA we are and always will be about the music”.
He added: “There is no script or instructions [for my successor]. Instructions are institutional and temporary. FCA is a culture of leaders and employees that were born out of adversity and who operate without sheet music.”