The new Fiat Chrysler leader aims for the success of the Jeep

Now, the British executive must take its success with Jeep and expand the entire Fiat Chrysler Automobiles NV range at a time when the Italian-American automaker also spends heavily to catch up with new technologies, such as electric and hybrid vehicles.

Fiat's board of directors appointed Mr. Manley on Saturday

Sergio Marchionne,

The deterioration of his condition as a result of surgery early this month forced him to appoint a successor earlier than planned. Mr. Marchionne, 66, who had orchestrated the merger of Fiat and Chrysler and headed the merged company for nearly a decade, had planned to retire in early 2019.

The Executive 54-year-old, who declined to comment for this article, has been one of Marchionne's senior lieutenants since 2009 and recently ran the automaker's Jeep and Ram truck brands – two of the most profitable units from the company.

The increase in sales of these two brands five-year plan that Marchionne outlined last month, which aims to double the company's operating profit to 13 billion euros. euros ($ 15.2 billion) in 2022 compared to $ 6.6 billion in 2017 and to increase global profit margins to 11% in 2022 from 6.3% in 2017.

Chairman

John Elkann,

the descendant of Fiat's founding Agnelli family, singled out Manley's accomplishments at Jeep in an internal letter sent Saturday to Fiat Chrysler employees. "Under his leadership, the Jeep brand has gone through a profound transformation and a period of unprecedented development," he said.

Manley inherits a business that, in recent years, has made progress in repaying its debt and has moved to a net cash balance, largely thanks to the success of its trucks and SUVs in the United States. -United. Fiat Chrysler doubled In 1965, investors rewarded the company by almost doubling its stock price over the past year. Friday before Mr. Marchionne's replacement, Fiat Chrysler shares fell 1.1% to $ 19.32 in New York

. One of the first challenges of the new CEO will be the consequences of the Trump administration tariffs on aluminum and steel. The White House says it could expand to include vehicles and auto parts. This could reverse the supply chain of the industry and force the automakers to raise prices.

"This storm is just on the horizon.It is going to have to have a voice in this [debate]" said

Mike Jackson,

The CEO of AutoNation Inc., the largest chain of auto dealerships in the United States.

Fiat Chrysler faces regulatory challenges, including the most important recalls of any major automaker in the United States. Fiat Chrysler officials denied intentional misconduct in both cases.

The company, which shipped 4.4 million vehicles worldwide last year, also faces slow growth in sales in Europe and declining profits. Beyond these short-term issues, Fiat Chrysler is racing to catch up in the capital-intensive, self-driving electric cars, a recent change after Marchionne expressed skepticism for years. Fiat Chrysler, the smallest of Detroit's three automakers, struggled to keep pace with its biggest rivals by investing in new models and technologies, a challenge that Marchionne has had to face on many occasions. He has focused on his efforts in recent years to increase the size of the company by finding a merger partner.

After acquiring the Italian Fiat SpA in 2004, Mr. Marchionne took control of Chrysler Group LLC. At the time, few thought Chrysler would survive, but as the US market rebounded after the recession, it ended up generating most of the profit of the two automakers, which were formally combined in the country. 2014.

Poker enthusiast, Mr. Marchionne liked taking great risks as CEO – like killing the company's sedans long before his rivals – and publicly scolding the industry for his productive ability excessive and low profitability. He raised his eyebrows in 2015 by writing a missive called "Confessions of a Junkie Capital," arguing that the industry is making too many low-profit vehicles, and pursuing an unsolicited merger with

General Motors

that the greatest rival rejected

. Manley's nomination puts an end to a succession race that included the European head

Alfredo Altavilla

and financial leader

Richard Palmer,

according to industry analysts and insiders of the company. It is unclear who will assume the role of Mr. Manley at the helm of the Jeep and Ram brands, as well as the future for the other internal candidates for the position of CEO.

A spokesman for the company said that no decision has yet been made on who will fulfill these roles at Jeep and Ram.

Manley, who joined the company in 2000 while he was still DaimlerChrysler, is as hard-working as Mr. Marchionne's multitasking, but keeps a much lower profile than his former boss, say the dealerships and Fiat Chrysler officials.

"said Wes Lutz, a Chrysler dealer based in Jackson, Michigan, who is president of the National Automobile Dealers Association. "As for dealers, we think it's going to be a good choice" because of his deep retail experience, he said.

Manley worked closely with dealers for most of his career and oversaw the launch of new models, such as the new Jeep Wrangler pickup and Ram 1500.

Manley has less than He has a background in finance and manufacturing, areas that Marchionne obsessed during his tenure, say analysts and dealers, but he benefits from Marchionne's strategic plan. "[He] knows that his main goal is the execution and that already he has a strategy in which his team has bought," wrote Evercore in a research note published Sunday.

Manley has made no public statements since being named CEO, but will hold a earnings call Wednesday for financial analysts. Delays associated with the launch of the company's new Ram 1500 pickup truck are expected to weigh on the excellent results of the second quarter, according to Evercore, which forecasts an adjusted operating profit of 2.1 billion euros. compared with 1.6 billion in the previous quarter and 1.8 billion euros a year ago.

million. Manley will also oversee a period of major investments with Fiat Chrysler targeting a 45 billion euros spending plan over the next five years to focus on the core brands, including its Alfa Romeo luxury cars and Maserati, and expand its range of electric vehicles. 19659003] Write to Chester Dawson at [email protected]