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There is a lot of hype about the power of CEOs to generate change. However, most of the time, these business presidents are the product of the times lived and not the reverse. Moss is used mainly to justify their immense salary packages. Sergio Marchionne, on the other hand, deserved to be called leader. He had a vision of what needed to be done to heal a struggling company or industry, worked tirelessly to make it a reality, and brought many more with him. His death leaves a void at Fiat Chrysler and in the auto industry
In the automotive sector, a common way to praise a leader is to say that He is "a lover of cars". Marchionne liked cars, especially rapids, but he was an outsider in the industry. He was admitted as a lawyer and accountant, he headed a test and certification company when Umberto Angelli proposed to join Fiat's board of directors in 2003. A year later, he was CEO of the group [19659004HeacknowledgedwhathadtobedoneandhadtheaudacitytothinkthatitwaspossibleTheautomotiveindustryisbrutalWemustconstantlylaunchnewgenerationsofproductseachbetterthanthepreviousonebutnotmoreexpensiveAndheisfiercelycompetitiveMarchionnedetectedtwothings:atFiatinvestors'capitalconsumptionwasoutofcontrolandcouldneverproducecarsthatwerecompetitiveinpriceorqualityifitdidnotscaleup
Discipline in terms of capital. He risked fighting with the company's unions when he reduced his production in Italy. With these and other cost reductions, Fiat in two years has ceased to record losses of billions of dollars to start generating profits.
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But the problem of scale was always present. Paradoxically, however, Marchionne's next step was to break a partnership with the largest of its partners, General Motors. Their alliance did not give Fiat the chance to decide its own destiny, and Marchionne negotiated a $ 2 billion US payment from GM
. Then came the Chrysler acquisition, if the acquisition is the correct word. . For nothing in return, Fiat took control of the company that was on the brink of bankruptcy. Many thought that Fiat was taking a terrible risk at that time, and it was so. But Marchionne knew full well that Fiat had few options: the company needed to be enlarged and had no interest in buying it. Today Chrysler generates the majority of the profits of Fiat Chrysler. The splits of Ferrari and CNH Industrial were also controversial and profitable
Electric and autonomous cars would need even more investment from a company that already requires a lot of capital for function. Marchionne argued that if these investments were replicated by each of the global companies from what remains of a fragmented industry, the economic damage would be severe. The only way to go from the front was to continue consolidation. He attempted a total merger with GM in 2015 and failed.
The leadership that leads to real change is exhausting, and Marchionne's work habits were legendary. Thanks to their efforts, their investors have made a lot of money. Of course, he was not the only CEO to do it. He will always be remembered for the way he did his job: he did not stray from his own strategic vision of risk and criticism, he clearly said what he thought he demanded the most from him and his team. . His leadership model saved two companies from bankruptcy. The reason why more executives do not mimic it is probably because there are very few who have the energy, intelligence and willingness of Marchionne.
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