Fiat Chrysler Automobiles CEO Sergio Marchionne stated that the carmaker is probably going to remain as it is and another transformation will not happen, at least while he is still in charge.
Sergio Marchionne is the brain behind the merger deal that created the world’s seventh-largest carmaker, Fiat Chrysler Automobiles NV. Throughout most of last year, he pushed for another massive transformation deal, aiming to join forces with General Motors Co. Some four months ago, Marchionne said his proposed merger with larger rival GM was his “high priority” and the agreement would deliver strategic opportunities to the seemingly unwilling future partner, but GM’s board openly refused to go through. Now, he has changed his speech, as he prepares to retire at the end of 2018. “We went back to concentrate on the 2018 plan which would boost Fiat Chrysler’s value and its position in a deal,” Marchionne said Monday after completing the spinoff of supercar maker Ferrari NV. “The difference is that it won’t be me to do it. It will be someone else’s duty.” “I met Mary Barra less than a month ago in Washington,” he added. “I don’t think I will have another coffee with her. It won’t happen again in the future.”
The 63-year-old executive future plans are to focus on its 52-billion-dollar five-year investment plan to develop and improve the company’s brands. But this plan will not be so easy to put into practice, as, according to people familiar with company’s plans, Fiat Chrysler Automobiles NV is holding back the launching of several new models because of the moderate pace of the Chinese auto market and a drop in Brazil. “It’s time for FCA to bring in a car executive to run the company,” said Erik Gordon, a business professor at the University of Michigan. “There is nothing left for Marchionne to do that he is good at.” The spinoff of Ferrari was his latest attempt to collect some extra funding, raising about 4 billion euros (4.4 billion dollars) for Fiat Chrysler and increasing the companies’ combined value.
Via Automotive News