Fiat Chrysler Taps Jeep Head as New CEO to Replace Ailing Marchionne

Fiat Chrysler Taps Jeep Head as New CEO to Replace Ailing Marchionne

DETROIT—

Fiat Chrysler Automobiles


FCAU -1.08%

NV appointed the pinnacle of its Jeep model as its new chief govt Saturday in an sudden transfer to change the ailing

Sergio Marchionne,

who engineered the merger of Fiat and Chrysler and led the mixed firm for practically a decade.

Fiat Chrysler’s board named

Mike Manley

as CEO and stated that Mr. Marchionne wouldn’t have the ability to return after struggling problems from a surgical process earlier this month. The transfer comes months forward of Mr. Marchionne’s deliberate departure early subsequent yr and simply weeks after he announced a strategy via 2022 to increase the corporate’s world gross sales quantity and profitability.

Mr. Manley, 54, joined predecessor agency DaimlerChrysler AG in 2000 and has led Jeep since Chrysler LLC exited chapter 9 years later below the take care of Fiat. The iconic sports activities utility model has been one of Fiat Chrysler’s strongest performers, serving to underwrite the corporate’s regular restoration in profitability.

The new CEO will take over at a time when Fiat Chrysler boasts a robust steadiness sheet however is nursing a fame tarnished by regulatory crises involving security lapses, suspected emissions dishonest and bribery allegations. The accelerated succession may rekindle hypothesis the auto maker could search to unload all or a part of itself. Mr. Marchionne as soon as sought such a deal however, extra lately, had abandoned the idea.

Fiat Chrysler Chairman

John Elkann

stated the transfer was “unthinkable until a few hours ago” however would offer stability for the corporate.

“The succession plans we have just announced, even if not without pain from a personal point of view, mean we can guarantee the maximum possible continuity, preserving our companies’ unique cultures,” Mr. Elkann stated.

Mr. Marchionne, who’s 66 years outdated, had stated he deliberate to step down as CEO early next year however proceed to serve as chairman and chief govt of

Ferrari

NV, which was spun off from Fiat Chrysler and have become an unbiased firm in 2016.

Ferrari stated individually that Mr. Elkann would take over Mr. Marchionne’s function as chairman on the luxurious sports activities automotive maker. Fellow board member

Louis Camilleri,

chairman of Philip Morris International, would succeed Mr. Marchionne as CEO of Ferrari.

The Italian-American auto maker hasn’t specified the character of Mr. Marchionne’s sickness however stated earlier this month that he had an operation on his proper shoulder. Company officers have stated privately that he has been absent from his day-to-day function on the firm for weeks.

A workaholic known for making blunt comments and wearing black sweaters instead of formal business attire, Mr. Marchionne has been an outsize presence within the auto trade. Under his watch, Fiat Chrysler confounded critics on Wall Street and elsewhere by assembly most debt-reduction and revenue targets.

Fiat Chrysler largely delivered on profit goals outlined in its final strategic plan, which dates again to 2014, and have been triple what some analysts projected. The firm’s inventory value has practically quadrupled since then and its wholesome 6% revenue margin is greater than crosstown rival

Ford Motor
Co.’s

5.2% margin and approaching

General Motors
Co.’s

7.2%.

Mr. Manley hasn’t made an announcement, however an organization spokesman stated he could be on a name with monetary analysts subsequent week after Fiat Chrysler releases its earnings report for the second quarter.

Write to Chester Dawson at [email protected]

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