Marchionne Keeps His Position as ACEA President image

Fiat CEO Sergio Marchionne announced he will not give up his position as President of the European Automotive Manufacturers Association.

He called VW executives ‘reprehensible’ for calling his resignation and for publicly suggesting that Fiat will not survive the European economic recession without government’s help. All ACEA CEOs met at the Paris Motor Show, after Marchionne dared VW executive to call for his resignation during the meeting, and not as they did through the VW press office.

In July, Stephan Gruehsem, VW’s chief spokesman, told reporters that Marchionne is not qualified to be ACEA CEO and that VW will quit the organization after he blamed the German automaker’s pricing strategy, which created a “bloodbath” in Europe. Another thing that enraged the VW officials is that Marchionne suggested that European plant closures should be discussed with the European Union and not left to the individual companies.

This means that Marchionne wants the EU to convince VW to close a plant in Germany, which the company has not done since after World War II, instead of closing other affected plants in Poland, Italy, France and elsewhere. All this rage was caused by VW which offered massive discounts to increase its sales in Europe, affecting Fiat, Peugeot and Renault.