Sergio Marchionne Dies At 66: Former Automotive CEO Was Architect Of Fiat And Chrysler’s Revival
Sergio Marchionne, the chief executive who helped transform the fortunes of Fiat and Chrysler before he ran both companies following their merger, died Wednesday at a Zurich hospital. He was 66.
As noted by BBC News, Marchionne was replaced as Fiat Chrysler CEO on Saturday by Jeep division head Mike Manley after his health had declined due to “unexpected” complications from right shoulder surgery. He was planning to step down from his post as CEO next year or 15 years after he first took over as Fiat chief executive in 2004.
“Unfortunately, what we feared has come to pass. Sergio Marchionne, man and friend, is gone,” read a statement from Fiat Chrysler chairman John Elkann, a member of the Agnelli family that founded Fiat.
“My family and I will always be grateful for what he has done.”
During his time as an automotive chief executive, Sergio Marchionne made his name quickly as he turned things around for Fiat, making difficult decisions when he cut middle management jobs and slashed wages to help the then-struggling Italian company reduce its losses, as recalled by CNN. Marchionne’s efforts were successful, as the company had its first profitable year in five years about two years after he took over as CEO.
In 2009, Marchionne helped Chrysler survive bankruptcy shortly after the American automaker was kept afloat by a U.S. government bailout. Fiat and Chrysler then merged in 2014 when the former company bought out the latter’s remaining shares. With Marchionne having engineered Chrysler’s turnaround and defended it from criticism following the Obama administration’s bailout, the company became a “debt-free, profitable” global carmaker, according to CNN.
CNN also remembered Sergio Marchionne as a hardworking, fearless decision maker who stood out for his memorable quotes and fashion sense, where he favored black sweaters and shunned the traditional chief executive’s suit-and-tie attire. Kelley Blue Book executive analyst Rebecca Lindland recalled Marchionne as someone who often “juggled” multiple phones and “lived on an airplane” as evidence of his strong work ethic.
Sergio Marchionne dies. Remarkable man. Could have huge ramifications in F1 – do Ferrari stick with plan to promote Leclerc over Räikkönen? What about Alfa Romeo sponsorship of Sauber? And then there’s the 2021 rules/finance talks https://t.co/GpTTcXimRC
— Andrew Benson (@andrewbensonf1) July 25, 2018
While most chief executives of car companies would defend their products regardless of consumer backlash, Marchionne wasn’t afraid to admit it when a Fiat Chrysler vehicle was a flop. CNN mentioned the time he called the Dodge Caliber an “abomination” with a subpar design and another instance where he encouraged people not to buy the Fiat 500e, saying that he lost about $14,000 for each unit of the electric car.
Aside from his leadership of Fiat Chrysler and Ferrari, which he took over as chairman in 2014 and CEO in 2016, Sergio Marchionne also contributed heavily in the world of Formula One, as noted by BBC. He fought planned reforms new F1 owners Liberty Media had intended for the 2021 season, and also threatened to pull Ferrari out of competition multiple times if he didn’t like the American media conglomerate’s intended changes.
