On the death of Sergio Marchionne: The Wolf in woolen sweater

07/25/2018

The death of Sergio Marchionne The Wolf in woolen sweater

AFP

Fiat Chrysler boss Sergio Marchionne in March 2018

It should only be a small operation on the shoulder, nothing serious. Within a few days, Sergio Marchionne assured only a few weeks ago, he would resume his work. But the Zurich University Hospital, to which he was admitted at the end of June, has not left the 66-year-old car manager. The surgery had unexpected complications, so Marchionne entered less than a week ago CEO of Fiat Chrysler Automobiles (FCA) back, Now Marchionne has died after a short, serious illness, as Fiat and Ferrari President John Elkann now confirmed.

Elkann, scion of the Fiat owner family Agnelli, loses not only a “man and friend,” as he said himself. But the manager who saved the family heritage – by saving the Italian automaker Fiat from ruin.

For when the Agnellis Marchionne made in 2004 to Fiat boss, it looked more than gloomy for the Italian carmaker. The group had debts, a chaotic model policy, sales fell – in short: Fiat was bankrupt.

As a reorganizer Marchionne cared little for old-fashioned conventions of the auto industry. On the outside, too, the avid poker player was a bit out of line: his trademark was the dark pullovers that he wore better than suits. Marchionne had studied in Toronto, worked as a lawyer and accountant – and was not an auto engineer, but someone who knew a lot about financial deals and negotiations. With this unusual for the auto industry, he saved Fiat from the downfall – step by step, deal by deal.

“He acted like an investment banker”

Follow Wilfried Eckl-Dorna on twitter

First, he convinced the former Fiat partner General Motors to buy out for a billion dollars at Fiat. Then he put pretty much anything old-fashioned at Fiat to the test: He stretched the product cycles, invested much less money in new cars. He enforced plant closures against trade union resistance. He cut back on the bureaucracy and halved the development times for new models. He did not even shy away from Italian national owners: a few years ago he moved the official headquarters of Turin to Amsterdam and London.

“He acted like an investment banker,” says industry expert Ferdinand Dudenhöffer to Marchionne. When the opportunity presented itself to buy the also battered US automaker Chrysler, he attacked. In several steps he united the Italian and the US automaker, 2014, the two companies merged to Fiat Chrysler Automobiles. Almost in passing, he split off several fringe businesses – and successfully brought the prestigious Fiat brand Ferrari on the stock market.

With a series of clever financial deals, he turned two outmoded automakers into a global and ultimately profitable group. Only a few weeks ago Marchionne realized his last big goal: to free Fiat Chrysler from its debts. He also presented a new five-year plan, with the FCA especially wanted to strengthen its niche brands,

Marchionne liked to do all this a bit louder than quiet: The manager, born in Abruzzo in 1952, was well-known in the industry for his pithy sayings. To allegations, even Fiat cheated on emissions, he said with regard to VW as: “Who compares us with the German company, something illegal has smoked.” And a few years ago, he also accused his favorite opponent VW of causing a “bloodbath at the margins”. This earned him the reputation of a “car desperado” – but in total acted quite successfully.

Only at the announcement of the successful debt reduction in June, he wore a tie, barely visible. He had once promised that – in case the debt reduction should succeed. It was to be his last big performance, as it tragically turned out. Now it is up to his successor Mike Manley to continue Marchionne’s often unconventional path. He is the first official act just today – on the anniversary of his predecessor – present the Fiat quarterly figures.

with material from dpa

To home page