Sergio Marchionne, chief executive officer of Fiat SpA and Chrysler Group LLC, unveiled a new management structure on Thursday.
Fiat, which has 53.5 percent of Chrysler, developed 25 positions on its joint executive team. They will be occupied by 22 executives, including Chief Executive Sergio Marchionne, who will continue as CEO of the two companies.
The move effectively shifts the nexus of power to Auburn Hills, though Fiat-Chrysler’s formal headquarters will remain in Turin, Italy. The news comes a week after (as we all expected) the Italian automaker bought out the U.S. and Canadian governments, which bailed out a bankrupt Chrysler in 2009.
In all, nine executives from Chrysler will sit on the council, which the statement described as the companies’ highest decision-making authority aside from the board.
The melding of the two companies’ management marks a milestone for the 112-year-old Italian carmaker, its US partner, and Mr Marchionne.
“We have now reached the right moment to step on the accelerator of the Fiat-Chrysler integration,” Mr Marchionnne said. The council is the highest decision-making body at Fiat outside of the board of directors, the statement said.
The idea to merge the automakers is to reduce costs and achieve a target of more than 100 billion euros ($140 billion) in revenue by 2014. He said in May that the timing of a merger hasn’t been decided, adding that it’s not likely this year.