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by David Shepardson
WASHINGTON (Reuters) – Mike Manley, the new Managing Director of Fiat Chrysler Automobiles (FCA), has made Jeep an international brand and is now planning to implement the strategy of parent company unveiled last month.
The Italian-American automaker said on Saturday that Manley immediately badumed the duties of Sergio Marchionne (66), whose health condition deteriorated as a result
Sergio Marchionne, who was due to resign in April 2019, had exposed at the beginning of June his strategic plan to double FCA's operating profit by 2022 thanks to SUVs and cars. hybrids and electric, the latter to be invested by nine billion euros.
It is this plan that Manley, who also badumes responsibility for the North America region. North, will work to achieve.
"The success of the Jeep brand under Mike Manley and his international experience make him a wise choice to be FCA's new boss," said Karl Brauer, Autotrader and Kelley Blue Book editorial director.
Manley, 54 years old and of British origin, had been a Jeep brand since 2009 following a restructuring after a US and Canadian bailout under Fiat's control.
Since then , Jeep's annual sales have gone from 300,000 copies – concentrated in virtually the United States alone – to 1.4 million worldwide last year.
FCA, the seventh-largest global automaker, said in June that one SUV out of 12 sold in the world by 2022 would be without a doubt a Jeep.
Jeep plans to introduce nine new products, expand into three new segments, including large SUVs, and offer four electric versions by 2022.
Manley has launched Jeep production outside the United States, China, India, Mexico and Italy, with the aim of increasing its international sales
"The fact that there is already a new plan, which the management teams have adopted en bloc, facilitates a little bit like Manley's successor, "says George Galliers, an badyst with Evercore broker ISI.
Morgan Stanley badysts said in June that the Jeep and Ram brands, which Manley took over in 2015, were An annual turnover of $ 84 billion, or two-thirds of the total turnover of FCA, and considered them essential for the future of the manufacturer.
THE BAR VERY HIGH
Manley inherits a builder whose debt has been reduced by the predecessor, who also considered that a merger for FCA would be "ultimately inevitable."
The value of Fiat has been multiplied by 11 since Marchionne took over the reins in 2004, thanks in particular to divisions of CNH Industrial and Ferrati. Another split is planned, that of the equipment manufacturer Magneti Marelli; planned for this year, it should in turn increase the generation of value.
Marchionne also redesigned the organizational charts, reworked according to a philosophy of meritocracy, and made clear cuts by reducing the number of architectures of vehicles and setting up joint ventures to share development costs and fixed costs.
Marchionne, a hard-nosed businessman, forced General Motors in 2005 to pay Fiat $ 2 billion to not exercise its option. to sell his car division to the American manufacturer, a feat of arms that did not necessarily help him in his future collaborative approaches.
Marchionne's operational results are a little less brilliant than his ability to close deals. [19659002] Profitability in Europe is improving but little by little, while FCA has not yet really broken through in China and Alfa Romeo still has not cleared However, Marchionne did not hesitate to stop production of unprofitable sedans in North America and re-equip badembly lines to produce much more profitable SUVs and pickups, inspiring competitors Ford and GM.
Marchionne has set the bar very high, too high perhaps for managers such as Umberto Borghesi (Albemarle Asset Management).
"The day he leaves, the company will lose its appeal, "he declared this year.
(With Laurence Frost in Paris and Agnieszka Flak, Danilo Masoni in Milan, Elvira Pollina in Turin, Wilfrid Exbrayat for French service)
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