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The sudden death of Sergio Marchionne at age 66 is a major blow not only for the distressed Fiat Chrysler Group, but for 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.
And his talents were not just about mega-fusions; He also initiated product plans that revived the fortunes of famous brands such as Alfa Romeo and Jeep. He led an impressive management team that exploited the low public interest for historical models such as the Fiat 500, for example, to rebuild the Italian brand at a time when its future was uncertain.
Maverick
In person, Marchionne was distinguished from the rest of the car patrons, not only by renouncing sharp suits for a V-neck sweater and pants, but also for his frankness. In an industry where hyperbole is everywhere, he has never been afraid to expose the media to the stakes of his brands 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 In Canada, at the age of 14, he spoke fluent English, Italian and French
. Perceived as a maverick by many competitors, he managed to bypbad traditional roads with the support of Fiat Chrysler's largest shareholder. the Agnelli family. In return for this support, he made them a fortune, thanks to deals such as the spin-off of Ferrari, whose value has more than increased tenfold during his tenure at the top of the automotive empire.
Commercial Achievement
Marchionne rescued 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 by 14-year-old dealnyking canny.
Against the fierce resistance of the traditionalists of the Italian automobile giant, it flattens 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 construction costs.
The engineers, who had witnessed countless promising leaders over the years, expressed their respect for a managing director. 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.
Yet, he encountered roadblocks along the way and his was not a career without chess.
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 offered a mixed response, having witnessed the failure of the implementation of the previous five-year plan.
An Uncertain Future
At Fiat, for example, the dependence on small cars such as 500 and Panda makes it hard for the brand to make a profit while Marchionne is not looking for new platforms for expand its product portfolio. And just as Fiat remains too dependent on small cars, at Chrysler, there is too much dependence on pbadenger carriers. Engineers and designers have not been able to advance new projects or expand their business to new segments as quickly as rivals.
The company also relied too heavily on the US for its cash flow from its Jeep and Ram divisions, while the potential of the Chinese market remained to be exploited. 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.
Wisdom
Yet in an era of revolution in the industry, Marchionne's leadership and wisdom were greatly needed among established players who were trying to repel newcomers such as Tesla from Elon. Musk and potential forays into the automotive world.
The irony is that he was in the last round in the role – due to resign next April – and that work was going on to find a replacement when he was going to undergo surgery on one shoulder, from which complications led to his death. Wednesday.
Fiat Chrysler was left at a serious crossroads, and its stock price, down 10 percent the day the company also announced a 35 percent decline in net profits, reflects the general concern over the long term
Meanwhile, the auto industry is experiencing the greatest upheaval for over a century without one of its key leaders.
Marchionne is survived by two children from her first marriage and her long-time partner.
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