The former head of Fiat Chrysler Automobiles (FCA) Sergio Marchionne has died at the Zurich clinic, where he was after shoulder surgery. The famous top Manager was 66 years.
Literally on 21 July, the Board of Directors of the FCA sent Sergio Marchionne to resign for health reasons, and on a post of the General Director of the company, he was replaced by John Elkann.
Sergio Marchionne is rightly credited with saving the Italian Fiat from a long-term crisis and the transformation of the company into one of the fastest growing automakers in the world.
In 2003, the Fiat losses amounted to 6 billion euros. Marchionne joined the company in 2004 and for two years was able to make it profitable again. In 2006 it paid a dividend to shareholders for the first time since 2002.
The result was massive layoffs, and the emergence of new models of machinery and the rapid innovations in the market — from four years to five.
Also in 2005, General Motors company (GM) Fiat has paid a penalty of $2 billion for failure to comply with the obligations to purchase its automotive business.
“His intelligence, perseverance and leadership qualities had saved Fiat,” said John Elkann.
The Salvation Of Chrysler
In 2009, Fiat agreed with the us government bought a 20% stake in Chrysler Group LLC to save the Detroit automaker from bankruptcy. Marchionne took the post of its Director General. Later in the interview, he noted that the deal gave him “a feeling of great responsibility.”
Applying proven experience at Fiat, Marchionne two years had returned to the company’s stability and made it profitable.
And by mid-2011, Chrysler has completely passed under the control of Fiat after buying the rights of ownership owned by the governments of the US and Canada.
The Association with Chrysler
Pearl career Marchionne can rightly be called the past in 2014, the transatlantic merger of Fiat and Chrysler.
Many experts and market participants doubted the success of the Association. But under the leadership of Marchionne, Fiat Chrysler Automobiles by 2016, ranked eighth in the world in terms of production engines. Over the past four years, the Corporation reduced debt by $12.5 billion And in the first quarter of 2018, FCA has increased its net profit by 59% to 1.02 billion euros. Global car sales during the same period increased by 5% to 1.2 million units.
Negotiations with General Motors
Sergio Marchionne has actively supported the consolidation of the automotive industry. In particular, he advocated the merger of Fiat and General Motors.
In 2015, he even sent some to shareholders, activists of the GM a letter offering to help this Association. But representatives of the American automaker did not support the idea.
Conclusion the Ferrari IPO and the “Formula-1”
Marchionne singled out sports car maker Ferrari into a separate company and led its IPO.
Now the automaker is worth $35 billion, although the IPO was estimated at $10 billion.
Taking in 2016 post of Director General of Ferrari, Marchionne also topped her team in the race “Formula-1”.