Sergio Marchionne

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Sergio Marchionne
Fiat Sergio Marchionne (cropped).jpg
Marchionne in 2007
Born June 17, 1952
Chieti, Italy
Died July 25, 2018(2018-07-25) (aged 66)
Zurich, Switzerland
Alma mater University of Toronto
University of Windsor
Osgoode Hall Law School
Occupation Former Chairman of CNH Industrial
Former CEO of Ferrari
Former CEO of Fiat Chrysler Automobiles
Former Chairman of Maserati
Former CEO of FCA Italy
Former CEO of FCA US
Former Chairman of SGS
Spouse(s) Orlandina (div.)[1]
Partner(s) Manuela Battezzato[2][3]
Children 2 sons

Sergio Marchionne (Italian: [ˈsɛrdʒo marˈkjɔnne]; June 17, 1952 – July 25, 2018) was an Italian-Canadian businessman, widely known for his turnarounds of the automakers Fiat and Chrysler, his business acumen and his outspoken and often frank approach, especially when dealing with unpalatable issues related to his companies and the automotive industry.

Marchionne was the chairman of CNH Industrial, the chief executive officer (CEO) of Fiat Chrysler Automobiles, the chairman and CEO of FCA US LLC, the chairman and CEO of Ferrari, and the chairman of Maserati. He was the chairman of Swiss-based SGS and vice chairman of UBS from 2008 to 2010, as well as the chairman of the European Automobile Manufacturers Association for 2012 (first elected in January 2006).[4][5] He was a member of the Peterson Institute for International Economics, and the chairman of the Italian branch of the Council for the United States and Italy.

Noted for his keen observations of the automotive industry, Marchionne's insights ranged from frank criticism of his company's own products to a highly-regarded 2015 presentation titled Confessions of a Capital Junkie, extolling the benefits of industry consolidation.[6]

Marchionne was widely recognized for turning around Fiat Group to become one of the fastest growing companies in the auto industry,[7] in less than two years.[8] In 2009, he was instrumental in Fiat Group forming a strategic alliance with the ailing US automaker Chrysler, with the support of the U.S. and Canadian governments and trade unions. Less than two years later, following its emergence from Chapter 11, Chrysler returned to profitability, repaying all government loans. In 2014, Fiat and Chrysler merged into a new holding company, Fiat Chrysler Automobiles, now the seventh-largest automobile manufacturer in the world.[9]

Following complications from surgery, Marchionne resigned from all of his positions in July 2018[10] and died a few days later.[11] The American business channel CNBC described Marchionne as a "legend of automotive industry",[12] while the British newspaper Financial Times considered him as having been "one of the boldest business leaders of his generation".[13]

Early life[edit]

Marchionne was born in Chieti, Abruzzo, Italy,[14] the son of Concezio Marchionne, from Cugnoli (Abruzzo), and Maria Zuccon from Carnizza (today Krnica, Croatia) near Labin in Istria. His father served as a Carabiniere in Istria, where he met his future wife. Marchionne's grandfather, Giacomo Zuccon, was killed in September 1943 by Yugoslav Partisans near Barban in Istria, while his uncle Giuseppe Zuccon was killed by the Nazis the same year. In 1945, when the region was occupied by the Yugoslav army, Marchionne's parents moved to Chieti in Abruzzo, where Sergio was born.[15]

At 13, Marchionne emigrated with his family to Toronto, Ontario, Canada, where they had relatives.[16] Carrying dual Canadian and Italian citizenship, he spoke fluent English, French and Italian. Marchionne was a Canadian certified general accountant (FCGA),[17] barrister, and a fellow of the Certified General Accountants of Ontario.[18]

Marchionne attended St. Michael's College School, before completing his undergraduate studies in philosophy at the University of Toronto and earning a bachelor of commerce degree (1979) and an MBA (1985) from the University of Windsor[19] as well as a law degree from Osgoode Hall Law School of York University (1983).[20] He received an honorary doctorate from Walsh College (2013).[21]

Career[edit]

Sergio Marchionne in 2006

From 1983 to 1985, he worked as an accountant and tax specialist for Deloitte & Touche in Canada. From 1985 to 1988, he was Group Controller and then Director of Corporate Development at the Lawson Mardon Group in Toronto. In 1989, he moved to Glenex Industries where he worked for two years as Executive Vice President.[22]

From 1990 to 1992, he was Vice President of Finance and Chief Financial Officer at Acklands Ltd. Between 1992 and 1994, he served as Vice President of Legal and Corporate Development and Chief Financial Officer of the Lawson Group, which was acquired by Alusuisse Lonza (Algroup) in 1994.[23][24]

From 1994 to 2000, he worked at Algroup (Alusuisse Lonza Group Limited) based in Zurich, where he became Chief Executive Officer in 1997.[22][24] He then took the helm of the Lonza Group in Basel, after its spin-off from Algroup, serving first as Chief Executive Officer and Managing Director (2000–2001) and then as Chairman (2002).[24][25]

In February 2002, he became Chief Executive Officer and Managing Director of SGS S.A. of Geneva where, in March 2006, he was appointed Chairman. Marchionne was elected as an independent member of the Board of Directors of Fiat S.p.A. in May 2003, until being appointed CEO in 2004.[24][26]

Chrysler[edit]

Chrysler Group CEO Sergio Marchionne (left-right), Congressman Hansen Clarke (MI-13), Plant Manager Pat Walsh, Secretary Tim Geithner, and UAW President Bob King on a tour of Jefferson North Assembly Plant (JNAP) in Detroit, on April 2011

In June 2009, when Chrysler emerged from Chapter 11 bankruptcy protection, Fiat Group received a 20% stake in Chrysler Group LLC and Marchionne was appointed CEO, replacing existing CEO Robert Nardelli.[27]

In February 2011 Marchionne sparked widespread controversy in the U.S. when he remarked at the J.D. Power & Associates International Automotive Roundtable that Chrysler's bail-out loans from the U.S. government carried "shyster rates".[28]

Marchionne immediately issued a public apology, stating "I regret the remark and consider it inappropriate" and going on to explain that "As the only parties willing to underwrite the risk associated with Chrysler’s recovery plan, the two governments [U.S. and Canadian] levied interest rates that, although appropriate at the time, are above current market conditions."[29]

In July 2011, following the purchase of the ownership interests held by Canada and the US Treasury, Fiat’s stake in Chrysler increased to 53.5% and in September 2011, Marchionne was also elected Chairman of Chrysler. Fiat and Chrysler officially merged under Marchionne's leadership on August 1, 2014.[30]

Following the 2015 Volkswagen emissions scandal, in January 2017, the EPA also accused Fiat Chrysler of illegally installing software that allowed excess diesel emissions to go undetected. Marchionne denied any wrongdoing. Therein he was critical of the EPA and rejected comparisons between Fiat Chrysler and Volkswagen.[31][32][33][34]

Death[edit]

Marchionne last appeared in public on June 26 in Rome, presenting a Jeep to the Carabinieri, Italy’s military police.[35] FCA subsequently announced Marchionne had taken medical leave for shoulder surgery at the University Hospital of Zürich in Switzerland — adding on the day of surgery he would not return due to post-surgical complications.[36] After further serious complications,[37] on July 21, Marchionne was replaced at FCA, Ferrari, SGS and CNH.[38][39][40]

He died on July 25, 2018, at age 66,[41] survived by his partner Manuela Battezzato, his two adult sons, Alessio and Tyler, and former wife Orlandina.[42]

Public image[edit]

Marchionne wearing his classic black woolen sweater

Marchionne earned a reputation for an outspoken and often blunt approach.[43][44][45] In a 2009 Forbes interview, Massimo Vecchio, an analyst with Mediobanca, commented on the contrast and Marchionne's controversial management style:[46]

"He's got a lot of American in his management style. The only thing that matters to him is results. If you don't deliver, you are out. He is quite ruthless. When Marchionne took over the company [Fiat], he was literally firing one manager a day but there was a leadership problem and nobody wanted to take hard decisions. The communication from bottom to top in management was slow and wrong. He also changed that. He reduced the layers of management and gave his role a more direct view of what the business was doing. And of course his ego is very big and sometimes people who had clashes with him were basically fired. Looking at his style from outside it seems awful, but he delivered."

Despite the buttoned-down business world in which he worked, Marchionne disliked having to think about his wardrobe, and became known for wearing black sweaters and jeans — keeping a supply of both in each of his residences.[47][48] Reporters noted that he had not been seen wearing a necktie since 2007.[49]

He was a chain-smoker until his final months.[50]

Honors and awards[edit]

  • Cavaliere OML BAR.svg Cavaliere del Lavoro – June 1, 2006[51]
  • 2005, Honorary Doctor of Laws from the University of Windsor (Canada)[52]
  • 2007, Masters honoris causa from the CUOA Foundation (Italy)[53]
  • 2007, Degree in Economics honoris causa from the Università degli Studi di Cassino[54]
  • 2008, he received a degree ad honorem in Industrial Engineering and Management from Polytechnic University of Turin (Italy)[citation needed]
  • Honorary Doctor of Business Administration from the University of Toledo (Ohio), May 8, 2011[55][56]
  • 2010, Marchionne was awarded the Premio Pico della Mirandola.[57]
  • 2011, Marchionne was awarded The Deming Cup 2011 for operational excellence presented by W. Edwards Deming Center at Columbia Business School.[58]
  • 2011, The Business Council for International Understanding honored Marchionne with the Dwight D. Eisenhower Leadership Award[59][60]
  • 2015, Marchionne was awarded the Hennick Medal for Career Achievement at Osgoode Hall Law School, York University by The Hennick Centre for Business and Law.[61]
  • 2015, Marchionne SAE Foundation Industry Leadership Award, when being was CEO of Fiat Chrysler Automobiles (FCA) and Chairman of CNH Industrial N.V.[62].[63][62] The award of 2016 has been recognized to Mark Fields, Chief Executive Officer of Ford Motor Company[64].

See also[edit]

References[edit]

  1. ^ "Sergio Marchionne, la compagna Manuela sempre al suo fianco". Today.it. October 20, 2017. Retrieved July 25, 2018. 
  2. ^ Chi è Manuela Battezzato, la compagna di Sergio Marchionne
  3. ^ "Sergio Marchionne, who saved Fiat and Chrysler, has died". Cnbc.com. March 30, 2015. Retrieved July 25, 2018. 
  4. ^ "Europe: Sergio Marchionne re-elected president of ACEA". Automotive World. January 12, 2007. Retrieved September 1, 2012. 
  5. ^ "UBS Plans to Cut Chairman's Next Term After Subprime Losses". International Herald Tribune. Retrieved February 27, 2008. 
  6. ^ Tommaso Ebhardt (May 26, 2015). "Fiat CEO's merger confession called 'spot on'". The Wall Street Journal. 
  7. ^ "Fiat Burning Rubber". BusinessWeek. Retrieved May 17, 2007. 
  8. ^ "Fiat Net Profit Soars as Automaker Promises the First Dividend Since 2002". MSNBC.com. Retrieved May 17, 2007. 
  9. ^ "Fiat Chrysler to spin off Ferrari, issue $2.5 billion convertible bond". Reuters. October 29, 2014. Retrieved July 11, 2015. 
  10. ^ Jackie Wattles; Chris Isidore; Peter Valdes-Dapena (July 21, 2018). "Sergio Marchionne, auto legend, steps down as CEO of Fiat Chrysler". CNN. Retrieved July 22, 2018. 
  11. ^ "Zurigo, morto a 66 anni Sergio Marchionne – Tgcom24". Tgcom24 (in Italian). Retrieved July 25, 2018. 
  12. ^ "Auto industry legend CEO Sergio Marchionne dies at age 66". Cnbc.com. October 1, 2009. Retrieved July 25, 2018. 
  13. ^ "Sergio Marchionne, car company executive, 1952-2018". Ft.trib.al. Retrieved July 25, 2018. 
  14. ^ ""Marchionne Sergio CV" (PDF). Fiat Group. Retrieved January 2, 2012" (PDF). Archived from the original (PDF) on July 17, 2012. Retrieved September 1, 2012. 
  15. ^ "Marchionne, il nonno infoibato, l'Istria nel sangue: il dramma di una famiglia italiana". Secoloditalia.it. February 23, 1976. Retrieved July 25, 2018. 
  16. ^ "Emigrazione Abruzzese". Archived from the original on July 22, 2011. 
  17. ^ "2011 CGA Fellowship Recipients". Cga-canada.org. December 12, 2011. Retrieved September 1, 2012. 
  18. ^ Sergio Marchionne: ecco chi lo sostituirà in FCA
  19. ^ "Sergio Marchionne BComm '79, MBA '85, Alumni Association, University of Windsor". 
  20. ^ "York in the Media". Y-File. Retrieved May 17, 2007. 
  21. ^ "Sergio Marchionne". www.fcagroup.com. Retrieved August 9, 2017. 
  22. ^ a b Sergio Marchionne, il duro in pullover che ha rivoluzionato la Fiat
  23. ^ "Sergio Marchionne – Il Foglio". Ilfoglio.it. July 21, 2018. Retrieved July 25, 2018. 
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  25. ^ Adnkronos. "Marchionne, un destino fra Europa e America". Notizie.tiscali.it. Retrieved July 25, 2018. 
  26. ^ July, Bloomberg (July 21, 2018). "A Timeline of Sergio Marchionne's Transformative Fiat Chrysler Tenure". Fortune.com. Retrieved July 25, 2018. 
  27. ^ Noah Joseph RSS feed. "BREAKING: Marchionne confirmed as post-bankruptcy Chrysler CEO". Autoblog.com. Retrieved September 1, 2012. 
  28. ^ Rachel Sanderson and John Reed (February 6, 2011). "Fiat in firestorm for floating Detroit move". Financial Times. Retrieved February 7, 2011. 
  29. ^ Dan Hart (February 5, 2011). "Chrysler's Marchionne Says Calling Loans `Shyster Rates' Was Inappropriate". Bloomberg News. Retrieved February 7, 2011. 
  30. ^ "APPROVAL OF CROSS-BORDER MERGER TO CREATE FIAT CHRYSLER AUTOMOBILES N.V. (FCA)" (PDF). www.fcagroup.com. Fiat S.p.A. Retrieved September 20, 2015. 
  31. ^ David Shepardson; Bernie Woodall (January 13, 2017). "EPA accuses Fiat Chrysler of excess diesel emissions". Reuters. Retrieved March 7, 2017. 
  32. ^ Hiroko Tabuchi (January 12, 2017). "E.P.A. Accuses Fiat Chrysler of Secretly Violating Emissions Standards". The New York Times. Retrieved March 7, 2017. 
  33. ^ Nathan Bomey (January 12, 2017). "EPA accuses Fiat Chrysler of cheating emissions laws". USA today. Retrieved March 7, 2017. 
  34. ^ Tom Krisher; Michael Biesecker (January 12, 2017). "Fiat Chrysler accused of emission cheating by U.S." The Toronto Star. Retrieved March 7, 2017. 
  35. ^ 'FCA paints grim picture of Marchionne's health,' Autonews, July 21, 2018.
  36. ^ "Fiat Chrysler Paints Grim Picture of Marchionne's Health". Retrieved July 23, 2018. 
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  38. ^ "Fiat Names Jeep Chief Manley to Replace CEO Marchionne". 
  39. ^ Editorial, Reuters. "Fiat, Ferrari boards to meet on Marchionne succession – report". 
  40. ^ Editorial, Reuters. "Fiat Chrysler to name Jeep's Manley to replace Marchionne as CEO -..." 
  41. ^ Di Paolo Griseri. "E' morto Sergio Marchionne, l'uomo che salvò l'auto italiana". Repubblica.it. Retrieved July 25, 2018. 
  42. ^ Bianca Carretto. "Marchionne: la compagna Manuela Battezzato, i figli, l'Italia. Il suo volto segreto". Corriere.it. Retrieved July 25, 2018. 
  43. ^ Kristine Owram (July 14, 2015). "Sergio Marchionne has nothing to fear from the Ontario government". Financial Post. Retrieved March 7, 2017. 
  44. ^ "The New Iacocca: Chrysler CEO Marchionne Is Already Sorry He Opened His Mouth". CBS News. February 7, 2011. Retrieved March 7, 2017. 
  45. ^ Dana Flavelle (March 7, 2014). "Chrysler chief Sergio Marchionne: straight shooter, tough negotiator". The Toronto Star. Retrieved March 7, 2017. 
  46. ^ Javier Espinoza (April 14, 2009). "Can Sergio Marchionne Save Chrysler?". Forbes. Retrieved March 7, 2017. 
  47. ^ Neal E. Boudette and Elisabetta Povoledo (July 25, 2018). "Sergio Marchionne, Who Revived Fiat and Chrysler, Dies at 66". The New York Times. 
  48. ^ "Why Chrysler boss Sergio Marchionne always wears black – The Star". 
  49. ^ "FCA CEO Sergio Marchionne surprises audience with this fashion choice". 
  50. ^ Neal E. Boudette (July 21, 2018). "Fiat Chrysler C.E.O. Marchionne Is Replaced After Falling Gravely Ill". The New York Times. 
  51. ^ "Sito web del Quirinale: dettaglio decorato". Quirinale.it. Retrieved September 1, 2012. 
  52. ^ Flak, Agnieszka; Barbaglia, Pamela (July 22, 2018). "Illness ends career of Sergio Marchionne, the CEO who liked to fix things". Automotive News Canada. Retrieved July 22, 2018. 
  53. ^ Marketizer.com, QuimiNet.com / e-Industria.com /. "Biografía de Sergio Marchionne, el CEO que revivió a Fiat, Chrysler y que convirtió a Ferrari en la cuarta Marca Más Poderosa del Mundo | QuimiNet.com". www.quiminet.com (in Spanish). Retrieved July 25, 2018. 
  54. ^ Degl'Innocenti, Chiara (July 25, 2018). "Sergio Marchionne, il manager in maglione che ha cambiato la Fiat - Panorama". Panorama (in Italian). Retrieved July 25, 2018. 
  55. ^ "Sergio Marchionne, 2011". NPR.org. Retrieved July 25, 2018. 
  56. ^ University, Michigan State. "MSU announces fall commencement speakers". MSUToday. Retrieved July 25, 2018. 
  57. ^ "Marchionne viene contestato per aver ricevuto il premio Pico 2010". Corrieredibologna.corriere.it. Retrieved September 1, 2012. 
  58. ^ "Chrysler Group Chairman and CEO Sergio Marchionne Awarded Deming Cup by Columbia Business School". Fiat Chrysler Automobiles. November 4, 2011. Retrieved March 7, 2017. 
  59. ^ "Chrysler Group Chairman and CEO Sergio Marchionne Awarded Global Leadership Award by Business Council for International Understanding". 
  60. ^ "BCIU Gala". Archived from the original on June 24, 2012. 
  61. ^ "Hennick Medal for Career Achievement : Hennick Centre". hennickcentre.ca. Retrieved July 25, 2018. 
  62. ^ a b "SAE Foundation Industry Leadership Award". Retrieved Jul 27, 2018. 
  63. ^ "FCA's Marchionne Named SAE Foundation's 2015 Industry Leadership Awardee". Automotive World. Detroit, Michigan. Oct 21, 2014. Archived from the original on July 23, 2018. Retrieved July 24, 2018. 
  64. ^ "SAE Foundation Names Ford Motor Company's Mark Fields 2016 Industry Leadership Award". Detroit, Michigan. Dec 9, 2015. Archived from the original on July 25, 2018. Retrieved Jul 24, 2018. 

Further reading[edit]

External links[edit]