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Fig. Xinhua / eyevine / EAST NEWS
The stock market reacted immediately to the reports of the death of Fiat's former president.
Less than two months after Fiat's strategy was announced, the president and chief architect of Strategy are dead. Investors worried about the future of the auto giant are selling the stock. In minutes, the company 's market value dropped by more than 2 billion euros [1965900]. Fiat' s longtime president, Sergio Marchionne, died Wednesday. Although several days earlier, due to health problems, he officially resigned, investors were seriously worried. This is best illustrated by the quotes of the auto action company. Compared to yesterday, there is more than 10%. on the red
The strong congress of Fiat shares followed soon after reports of the death of Marchionne. Apparently 10 percent that does not seem so much a loss, but when we convert it into value of the entire business, it turns out that we are talking about more than 2 billion dollars. euros. Still on Tuesday, the Fiat Chrysler Automobiles group has been valued by investors for more than 25 billion euros. Now it is close to 23 billion euros.
| Current Quotations of Fiat Shares on the Italian Stock Exchange |
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source: Google
Marchionne was head of Fiat since 2004. His internship was extremely long. Recent years have shown that investors trust the President and his development strategy. From the end of July 2016 until now, the shares of the car group have appreciated nearly three times. In total, during his reign the market value of Fiat increased by more than 10 times
Marchionne's role during these several years of presidency was enormous. Investors will remember that it is he saved the company from bankruptcy. Numerous bold and controversial decisions at the time resulted in record results for 2017. Fiat Chrysler Automobiles generated net income of nearly $ 3.5 billion, doubling the 2016 result and multiplying by 10 statistics from 2015.
It's under his reign in 2009 that Fiat takes control of the American Chrysler Company, saving it before falling.
Marchionne once said that "in the automotive industry there are sometimes accidents". At the time, however, he did not want to talk about the financial problems of Fiat or Chrysler, but one of his adventures. In 2007, Ferrari crashed 350,000 to drive too fast.
#dziejesiewmoto: the end of the world of Fiat
The former president will also remember his lifestyle and his clothes. He was a characteristic figure in the auto market because unlike other bosses, he never wore a tie, and a jacket replaced a sweater.
Investors' fears about the future are justified. Although Michael Manley officially took over the presidential post a few days ago, there is no harmonious transfer of functions and complete knowledge of the company. If it was not for health problems and a sudden death, Sergio Marchionne would probably be adviser and consultant in the most important affairs of the company
. Marchionne stood behind the new strategy announced recently for Fiat. At the beginning of June, he defined the main orientations of the activities, covering the next four years. His successor will certainly want to make some adjustments to it. The way they go is one of the risk factors. Investors too frequent changes and uncertainties do not like much.
The strategy announced in early June assumed, inter alia, transfer the production of the new generation Panda Fiat. Much has been said about the possibility of returning from Italy to Poland, and more specifically from the Tychy factory. More serious changes were also to be made to the Jeep brand which, from 2022, had to start from diesel engines. Fans of Alfa Romeo also welcomed the new plans, which in four years had to present seven new car models.
Fiat has been doing pretty well in our country lately. Polish last year bought nearly 30,000 Fiat Chrysler Automobiles, of which less than 14 thousand. Decrees. The popularity of this brand in 2017 has increased by 50%, while the growth of the automotive market was only 16%
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