Published: Mon, July 23, 2018
Money | By Ethel Goodwin

Marchionne replaced as FCA Group boss due to ill health

Marchionne replaced as FCA Group boss due to ill health

Marchionne was appointed as Fiat Auto's CEO in 2004, and engineered the company's takeover of Chrysler in 2009, after the American company entered a government-backed bankruptcy filing.

Fiat Chrysler Automobiles named Mike Manley, the head of its Jeep and Ram brands, to replace ailing CEO Sergio Marchionne at the helm of the world's eighth-largest automaker, according to Reuters.

Ferrari's board has named John Elkann as a new chairman, and will propose to shareholders that Louis C Camilleri be named CEO.

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 vehicle maker.

Manley also faces the test of meeting rigorous fuel-economy standards in Europe and China, along with managing through political uncertainty in Italy, and trade fears in the NAFTA zone and between the US and European Union - both important areas for Fiat Chrysler.

While FCA had a succession plan, the future appears less clear at Ferrari, the luxury brand that Marchionne was due to lead until 2021.

Marchionne was reported to have had surgery for a shoulder problem about three weeks ago in Switzerland. Details of the complications and his condition have not been released, but the company said they prevented him from returning to work. He took the driver's seat at Jeep in June 2009 at a time when the United States motor industry in general was battling huge headwinds whipped up by the global financial crisis the previous year.

Kent-born Manley joined DaimlerChrysler in 2000, taking over as boss of Jeep in 2009. Elkann went on to describe Marchionne as a mentor, true friend and an "enlightened leader" with unusual intelligence.

The La Stampa daily, the hometown newspaper of Fiat's headquarters city, Turin, where the boards were summoned to separate meetings, said the huddles were called to discuss who would succeed Marchionne.

Investors sent shares in Fiat Chrysler sliding Monday as they anxious about the exit of ailing CEO Sergio Marchionne, whose driven and creative management style has been the company's fortune.

"Marchionne ran FCA in a command and control style, with constant firefighting measures". However, health issues have seen him replaced by FCA chairman Elkann.

The passenger-car brands of Fiat and Chrysler have been less profitable.

At the June appearance, Marchionne also predicted Fiat was about to eliminate its debt.

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