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FCA CEO Mike Manley, former head of the Jeep brand (AP Photo / Carlos Osorio, FILE)
Investors at Fiat Chrysler Automobiles (FCA), shocked by the surprise news of Sergio's early exit Marchionne, supported the appointment of Mike Manley as the new CEO due to his strong track record of Jeep's outstanding performance and the fact that he was co-author of FCA's ambitious five-year plan [19659003]. FCA's share fell 2% on Monday after the bad news forced Marchionne to retire early, but began recovering on Tuesday with a rise of more than 1.5% early in the year. A little less than 16.50 euros.
"Mike Manley defends continuity and the new five-year plan" said the UBS investment bank.
In June, Marchionne unveils a tripling of profits plan by 2022, finally invests in electric vehicles and refocuses its big brands like Jeep, Ram Trucks, Alfa Romeo and Maserati. The plan forecasts profit margins of 11% in 2022, up from 6.3% last year. Jeep was instructed to increase sales by 50%, Alfa Romeo by more than 150% and Maserati by 100%. Cash flow was expected to rise from $ 4.1 billion to $ 4.7 billion in the near term, to $ 9.4 billion in 2022.
FCA shares plunged about 10% after the end of the year. Announcement, investors fearing that it is difficult to evaluate.
"We believe that Mr. Manley was among the most likely candidates to succeed Mr. Marchionne's estate anyway, as the manager of the RAM and Jeep brands, which contribute 80% of the results of the test. (profit before interest and taxes) of the FCA Group on our estimates, it has largely contributed to the success of FCA in recent years.Also important, it participated fully in the development of the new five-year business plan. ", says UBS analyst Patrick Hummel
The new CEO can start and not lose six months to start a new business
"We expect continuity, but note also that part of FCA's success has been the" cultural "ability to adjust its path to reach the objectives, "says Houchois
. Bold initiatives, such as Chrysler's purchase of the US government bankruptcy in 2009, when it gained enormous but risky access to the US market for very little comparative expense.
Investment bank Morgan Stanley liked Manley's nominations
"We hold Mike Manley in high esteem, and he has extensive experience with the two most valuable companies in FCA, Jeep and Ram. rated these companies at more than 100% of FCA's total market capitalization. "If Jeep's commercial success is an indication, Mike Manley has considerable strengths to lead a global automaker in the technology and strategic transition," said Adam Jonas , analyst Morgan Stanley
.
This had escaped Marchionne who wanted to merge with General Motors a few years ago.
Despite the appointment of Manley, Jonas warned that FCA would experience volatility during what could be a culturally difficult transition.
Evercore ISI, investment researcher, said: [1965] 9003] "We do not see the change of captain altering the course of the ship. The same team is responsible for delivering the plan. While Marchionne has turned out to be one of the world's greatest commanders in the automotive world, there is no reason why the 2022 plan can not be executed without a new leader, "said George Galliers, an analyst at Evercore. had hoped that Marchionne could execute a final global agreement, before retiring at the end of the year. FCA remains one of the finest equity issues under our cover over a 12-month period, "said Galliers.
Some investors were hoping that the spin-off of Alfa Romeo / Maserati, or even Jeep, could soon be on the cards.
Marchionne presided over the fallout of Ferrari and CNH. The spin of Magneti Marelli is currently in progress.
Manley's first big test comes on Wednesday, when he chairs FCA's quarterly results presentation.
[>19659029] Mike Manley, CEO of FCA, former Jeep Brand executive (AP Photo / Carlos Osorio, FILE)
