Former Fiat Chrysler chief executive Sergio Marchionne has died after a 14-year career. He was 66.
Marchionne had fallen gravely ill after a shoulder surgery in a Zurich hospital, according to the company. He was replaced as chief executive last weekend after Fiat Chrysler (FCA) said his condition had worsened.
FCA’s scheduled second-quarter earnings presentation, led by Marchionne’s successor and former lieutenant Mike Manley, began with a minute’s silence.
“Unfortunately, what we feared has come to pass. Sergio Marchionne, man and friend, is gone,” FCA Chairman John Elkann, scion of the controlling Agnelli family, said in a statement.
Marchionne rescued Fiat and Chrysler from bankruptcy after taking the wheel of the Italian carmaker in 2004, and he multiplied Fiat’s value 11 times through 14 years of dealmaking. He was due to step down at FCA in April next year.
“The best way to honor his memory is to build on the legacy he left us, continuing to develop the human values of responsibility and openness of which he was the most ardent champion,” Elkann added.
New boss, same strategy
FCA named Jeep division head Manley, 54, as head of FCA, saying he would execute a strategy that Marchionne had outlined in June.
FCA has said Manley will work to ensure a “strong and independent” future for the group.
Marchionne was also replaced as chairman and CEO of Ferrari and chairman of tractor maker CNH Industrial, both spun off from FCA.
In Marchionne’s June plan, FCA pledged to boost production of sport utility vehicles and invest in electric and hybrid cars to double operating profit by 2022.
Tributes paid
Tributes arrived from industry figures and politicians worldwide, praising Marchionne's perseverance, negotiating skills and candor.
Marchionne resurrected one of Italy’s biggest corporate names and revitalized Chrysler, succeeding where the U.S. company’s two previous owners - Mercedes parent Daimler and private equity group Carberus - both failed.
“Sergio Marchionne was one of the most respected leaders in the industry whose creativity and bold determination helped to restore Chrysler to financial health and grow Fiat Chrysler into a profitable global automaker,” said Ford Motor Company Executive Chairman Bill Ford Jr.
Daimler Chief Executive Dieter Zetsche in a post on Linkedin said, “The auto industry has lost a real giant. And many of us have lost a very dear friend: Sergio Marchionne.”
Marchionne flattened an inflexible hierarchy, replacing layers of middle management with a meritocratic leadership style. He slashed costs by reducing the number of vehicle architectures and creating joint ventures to pool development and plant costs.
In North America, Marchionne ended production of unprofitable sedans and retool plants to build pricier SUVs and trucks, a move since emulated by Ford and GM.
