Fiat Chrysler Automobile announced Saturday that CEO Sergio
Marchionne's health had suddenly deteriorated following surgery and that its
board of directors had chosen Jeep executive Mike Manley to replace him.
Marchionne, a 66-year-old Italian-Canadian, joined Fiat in 2004
and led the Turin-based company's merger with bankrupt U.S. carmaker Chrysler.
Manley, 54, had been heading the Jeep brand since June 2009 and the Ram brand
from October 2015.
The announcement, at the end of an urgently convened board
meeting, marked the end of the Marchionne era, which included the turnaround of
failing Fiat, the takeover of bankrupt U.S. automaker Chrysler and the spinoffs
of the heavy machinery and truck maker CNH and supercar maker Ferrari.
Fiat Chrysler said in a statement that due to his deteriorating
health Marchionne "will be unable to return to work."
Marchionne, 66, had already announced he would step down in
early 2019, so the board's decision, to be confirmed at an upcoming
shareholders' meeting, will "accelerate" the CEO transition process,
the statement said.
The England-born Manley had been one of Marchionne's closest
collaborators at the group, and in a previous role had been responsible for
product planning and all sales activities outside of North America.
Marchionne was reported to have had surgery for a shoulder
problem about three weeks ago in Switzerland.
Fiat is considered a close-knit family, and FCA chairman John
Elkann said he was "profoundly saddened to learn of Sergio's state of
health. It was a situation that was unthinkable until a few hours ago, and one
that leaves us all with a sense of injustice."
Elkann didn't give details of Marchionne's health problems,
adding that his "first thoughts go to Sergio and his family." He
asked everyone to respect Marchionne's "privacy and that of all those who
are dear to him."
Ferrari announced that Louis Camilleri, an Egyptian-board
Maltese and longtime executive at Philip Morris International, the tobacco
company, was chosen to replace Marchionne as CEO of the sports car maker.
Known for sleeping only briefly each night, Marchionne, who is
also a lawyer, was holding multiple leadership roles in the companies, notably
as CEO of FCA — Fiat Chrysler Automobiles, as well as CEO and chairman of
Ferrrari.
In early June, Marchionne made his last major presentation as
CEO of Fiat Chrysler. On that occasion he announced there would be a major
investment thrust to make more electrified cars, although traditional engines
will continue to dominate production. He unveiled FCA's plans through 2022.
Brands that have been driving the company's revenues include
Jeep SUVs, Ram trucks and the premium brands, Maserati and Alfa Romeo. Those
brands were expected to account for 80 percent of revenues by 2022, compared to
65 percent currently.
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