Published: Mon, July 23, 2018
Economy | By Melissa Porter

FCA's CEO Marchionne replaced immediately due to serious health issues

FCA's CEO Marchionne replaced immediately due to serious health issues

Marchionne is credited with rescuing Fiat and Chrysler from bankruptcy since taking the wheel at the Italian carmaker in 2004.

With Marchionne set to step down next year, the board said it has "resolved to accelerate the CEO transition process" by naming Mike Manley as the group's new CEO. "It was a situation that was unthinkable until a few hours ago, and one that leaves us all with a sense of injustice".

July 21, 2018, London - With reference to the health of Sergio Marchionne, Fiat Chrysler Automobiles N.V. communicates with profound sorrow that during the course of this week unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours.

He later became CEO of Ferrari and staged successful IPOs of both automakers.

Manley had worked as DaimlerChrysler's head of network development in Britain since 2000, having earlier worked for several years in auto dealership.

Marchionne's duties at FCA will be assumed by Mike Manley, who had been running FCA's Jeep division. Elkann went on to describe Marchionne as a mentor, true friend and an "enlightened leader" with unusual intelligence.

Marchionne and Manley
Marchionne has watched Jeep and Ram grow under Mike Manley's leadership

Sergio Marchionne is said to be unable to resume work due to health concerns.

It remains to be seen where the respective new executives will steer the company in the coming years now the roles have been separated out but Ferrari says it has given Camilleri "the necessary powers to ensure the continuity of the company's operation".

Marchionne had planned to leave the company early next year and had recently announced a strategy to boost company profits and global sales volume through 2022. Those brands were expected to account for 80 percent of revenues by 2022, compared to 65 percent now.

The passenger-car brands of Fiat and Chrysler have been less profitable. On that occasion he announced there would be a major investment thrust to make more electrified cars, although traditional engines will continue to dominate production. He was also a vocal and influential figure in F1 politics during his time as Ferrari's CEO.

Marchionne, an Italian as well as a Canadian, is steeped in economics as well as philosophy.

"He's a character and an important personality for Formula One, and I've always appreciated sparring with him", Wolff said.

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