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Fiat Chrysler on Saturday named its Jeep Division boss, Mike Manley, to immediately succeed general manager Sergio Marchionne, who is seriously ill after suffering serious complications after surgery.
British automaker Manley Marchionne, who was due to leave his post next April,
Marchionne, 66, rescued Fiat and Chrysler from bankruptcy after taking wheel from the Italian automaker in 2004. On Saturday, he has also been replaced as president and CEO of Ferrari and president of the manufacturer of tractors CNH Industrial – both from the FCA in recent years
"FCA communicates with deep sadness Unexpected complications occurred while Mr. Marchionne was recovering of a surgical procedure and that these complications have been considerably aggravated during the last hours, "the statement said.
Earlier this month Marchionne, a renowned and workaholic dealmaker, was recovering from an operation of the shoulder. But his condition has deteriorated sharply in recent days when he suffered mbadive complications that were not disclosed.
Ferrari named John Elkann, president of the FCA and member of the Agnelli family, as president, while Louis Camilleri became general manager. CNH has appointed Suzanna Heywood to replace Marchionne as President. The three companies remain under the control of the Agnellis.
Marchionne had previously stated that he planned to remain President and CEO of Ferrari until 2021.
DEAL FOCUS
One of the longest of the automotive industry … Marchionne has defended the relatively easy option of selling coveted brands such as Jeep, saying that it would leave too much of a problem. with Fiat as "the stump that remains"
But after being rejected by his privileged partner General Motors, he returned to the task of reducing FCA's debt – a goal he reached last month – while arguing that a merger for FCA was "inevitable in the end."
According to George Galliers, an badyst at Evercore, the investor hoped that a transformation agreement would have greatly diminished and should not affect Marchionne's market shares. "Even without Marchionne, FCA will remain" culturally more open to negotiation and knowledge of potential capital market opportunities than much of the competition, "he added.
" Many things are now rooted, so I do not think you are losing everything that he brought to the business overnight. "
Still, Manley will have a hard act to follow.
Marchionne resurrects one of the largest Italian companies and revitalized Chrysler, succeeding where the two previous owners of the American company – Mercedes Daimler and Carberus – both failed.
It multiplies by 11 the value of Fiat since its takeover, aided by companies like CNH Industrial and Ferrari.The planned separation of the parts manufacturer Magneti Marelli, planned for this year, should further increase this generation of value. 02] It has also flattened an inflexible hierarchy, replacing layers of middle management with a meritocratic leadership style. It reduced costs by reducing the number of vehicle architectures and creating joint ventures to bundle development and factory costs.
A tough negotiator known to get his way, Marchionne forced GM to pay $ 2 billion to Fiat not to sell. his automatic division at the American automaker – a story that may not have helped his later merger overtures.
Marchionne's balance sheet with the operational adjustments was a little more unequal than his case.
Profitability in Europe is recovering only FCA has not yet made any significant breakthrough in China and Alfa Romeo has not yet realized any profits.
In North America, however, Marchionne quickly stopped producing unprofitable sedans and retooling plants to build more expensive SUVs and trucks. Since, emulated by Ford and GM
But for fund managers like Umberto Borghesi who still hoped that Marchionne would bring another big problem before signing, the case of FCA investment can "
" The day where it will go, this company will lose its appeal, "said Borghesi, chief investment officer at Albemarle Asset Management, based in London early this year.
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