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The sudden death of Sergio Marchionne is a major blow not only to the distressed Fiat Chrysler Group, but also to the auto industry in general. The Italian-Canadian CEO has a proven track record in the automotive trade, making him one of the big names in the industry. Not only did he save Fiat from bankruptcy, but he also saved Chrysler by creating one of the big brands.
It was not only mega-fusions where his talents were located, he also launched product projects that revived the fortunes of major brands such as Alfa Romeo and Jeep. He led an impressive management team that exploited the low public interest for historical models like the Fiat 500, for example, to rebuild the Italian brand at a time when its future was uncertain.
Maverick
In person, he distinguished himself from the rest of the CEOs of the automobile, not only by giving up sharp suits for a V-neck pullover and trousers, but also for his frankness. In an industry where the hyperbole is seemingly habitual, he has never been afraid to expose the media to the problems his brands face and the industry as a whole. He often voiced his warning about the threat posed by the wave of new technologies sweeping the world of cars from electric powertrains to driverless cars.
In motor shows, Marchionne's Q & A sessions served as the most interesting answers and debates. It could turn like any other, but it could also be surprisingly straightforward and open.
Known for his work days from 6 pm to 8 pm, he was considered a very demanding master craftsman, waiting for that to be the same for those who l & # 39; 39; surrounded. He was a chain smoker and an espresso until about a year ago when he gave up both vices, but it seemed to have been a sacrifice too late.
The son of an Italian federal policeman (Carabinieri), Marchionne emigrated with his family He was 14 years old and spoke fluent English, Italian and French.
Perceived as a maverick by many rivals, he was able to bypbad the traditional roads thanks to the support of Fiat Chrysler's largest shareholder, Agnelli. family. In return for their support, he made them a fortune, thanks to deals like the spin-off of Ferrari, whose value has more than increased tenfold during his tenure at the top of the automotive empire.
Commercial Achievement
He saved Fiat and Chrysler from bankruptcy after taking the wheel of the Italian automaker in 2004 and he has multiplied the value of Fiat 11 times through 14 years of dealnyking canny.
Against fierce resistance among the traditionalists of the Italian auto giant, he crushed an inflexible hierarchy, replacing layers of middle management with a style of meritocratic leadership. It reduced costs by reducing the number of vehicle architectures and creating joint ventures to bundle development and factory costs.
Engineers, who had seen promising leaders perform over the years, expressed their respect for a CEO for the first time.
In 2005, Marchionne forced GM to pay Fiat $ 2 billion (1.7 billion euros) for not exercising an option to sell its auto division to the US automaker. It was a big coup for Fiat and came just at the right time to save the mark.
Still, he encountered roadblocks along the way and this was not a safe career along the way.
For all his prowess, the cars he delivered to the market were rather a mixed bag. He recently revealed a five-year plan for the group, including a host of new models, but the markets have taken it with mixed emotions, have witnessed the failure of the implementation of the previous five-year plan.
An Uncertain Future
For example at Fiat, the dependence on small cars like the 500 and the Panda meant that the brand was particularly struggling to make profits while Marchionne was not pushing for new platforms to expand its business. product portfolio. And just as Fiat remains too dependent on small cars, at Chrysler, there is too much dependence on people carriers. Engineers and designers have not been able to advance new projects or expand their business to new segments as quickly as rivals.
There was an over-reliance on US cash flow, its Jeep and Ram divisions, while the potential of the Chinese market remained to be exploited properly. And in a world that is moving inexorably towards automation and electric powertrains, FCA's mainstream brands did not seem to have a consistent plan in place.
Recent attempts to attract another car giant to merge with Fiat Chrysler have failed, amid suggestions that the Agnellis would like to expand their interests outside the automotive world.
Yet by the time the industry was going through a revolution, its leadership and wisdom were greatly needed among established players trying to fend off newcomers like Tesla's Elon Musk, and potential forays into the automotive world of technology giants. And before we get there, the industry faces the more immediate threat of global trade wars, where cars seem to be at the center of President Donald Trump's firing line.
The irony is that he was in the last round in the role – due to resign next April – and work was going on to find a replacement when he went for surgery on a shoulder, whose complications led to his death at the age of 66 on Wednesday.
Fiat Chrysler is at a crossroads and the price of its stock, down 10% the day the firm announces a 35% decline in net profits, reflects the general concern of the future plan long-term.
It leaves the auto industry facing the biggest upheaval for over a century without one of its key leaders.
He is survived by two children from his first marriage and his long-time partner.
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