Marchionne’s legacy
The CEO saved a major part of U.S. carmaking
For so long, former Fiat Chrysler Automobiles CEO Sergio Marchionne seemed indestructible, indefatigable. So the news late last week that a sudden health crisis had forced Fiat to replace him nine months before his planned retirement came as a shock to the automotive world. His influence can scarcely be overstated.
Mr. Marchionne saved Chrysler, and in doing so, saved a major part of the American automotive industry.
The turnaround expert revived Fiat after taking over that company in 2004. When Chrysler went into bankruptcy in 2009 and faced the prospect of being liquidated, Mr. Marchionne brokered a deal to acquire the automaker and began shepherding its turnaround.
Key to that plan was Jeep, the iconic American brand that has been part of Chrysler since 1987. Under Mr. Marchionne’s direction, Jeep grew and is still growing. Global sales are set to reach 1.9 million this year, almost triple what they were five years ago.
By 2017, the merged Fiat Chrysler reported a profit of more than $4 billion.
Even more than understanding how to salvage the company, Mr. Marchionne demonstrated he understood what made it worth saving in the first place. Again and again he committed to preserving Jeep’s U.S. roots.
When rumors circulated early this year that Jeep may be sold to Chinese interests, Mr. Marchionne was characteristically blunt: No, Jeep was not for sale. Not to the Chinese, not to anyone.
Other brands, however, may not fare well as the automotive industry changes. Dodge and Chrysler itself are likely to be diminished, as standard passenger cars decline.
Mr. Marchionne, 66, was known to sleep little and work grueling hours while traveling around the world on business. He was a demanding boss in that he expected everyone to work as hard as he did. Departing from typical CEO style, he rejected suits and ties for a uniform of dark cashmere sweaters, which he said simplified his work life.
Born in Italy, he moved to Canada as a teenager, graduated from college there and went on to work in Switzerland. He had a global outlook that served his company and employees well.
The company had announced his plans to retire in April of next year and began laying succession plans. Even so, news that complications from a shoulder surgery several weeks ago, which left him in grave condition in a Swiss hospital, rattled the industry.
Fiat Chrysler’s board met in an emergency session Saturday to appoint Mike Manley, the head of Jeep and Ram brands, to replace Mr. Marchionne. Mr. Manley will have big shoes to fill.