Detroit Bureau on Twitter

Posts Tagged ‘Sergio Marchionne’

FCA Sells Magneti Marelli for $7.1B to KKR’s Calsonic Kansei

CEO Manley signs off on deal Marchionne started.

by Joseph Szczesny on Oct.22, 2018

Selling off Magneti Marelli could accelerate the development of EVs and AVs FCA CEO considers critical to FCA's success.

After two years of speculation about if it and when it would do so, Fiat Chrysler Automobiles agreed to sell Magneti Marelli to KKR’s Calsonic Kansei for $7.14 billion, or 6.2 billion euros.

The new company, which is now the world’s seventh largest auto supplier, will be called Magneti Marelli CK Holdings. The new company boasts revenue of 15.2 billion euros, or $17.5 billion, the companies said.

Global News!

“This combination with Calsonic Kansei has emerged as an ideal opportunity to accelerate Magneti Marelli’s future growth,” Manley said on Monday of the FCA unit, which specializes in lighting, powertrain and high-tech electronics. (more…)

Marchionne Memorialized in Turin

“Life doesn’t stop.”

by Paul A. Eisenstein on Sep.14, 2018

FCA Chairman John Elkann, (c), is shown entering the Turin Cathedral for the Marchionne memorial.

An overflow crowd filled the Turin Cathedral on Friday morning marking the first of two planned memorials for Sergio Marchionne, the CEO of Fiat Chrysler Automobiles who died unexpectedly at the age of 66 nearly two months ago.

The ceremony brought out a mix of political and industrial elites, including FCA Chairman John Elkann and two former Italian prime ministers, as well as company workers and many local residents, according to Italian news reports.

Insight!

“Never take a break or a deep breath because life doesn’t stop,” said Elkann, the heir to the founders of the Fiat side of FCA, recalling Marchionne’s always-on-the-go work ethic.

(more…)

FCA Upgrades Proving Grounds for Self-Driving Vehicle Testing

Late to the game, FCA races to make up lost time with $30 mil project.

by Paul A. Eisenstein on Sep.05, 2018

A Waymo-modified Chrysler Pacifica Hybrid.

Fiat Chrysler Automobiles has invested $30 million to upgrade its sprawling Chelsea Proving Grounds, an hour west of Detroit to expand its ability to develop and test both autonomous vehicles advanced driver assist system technologies.

The automaker has been slow to embrace self-driving vehicle technology, though it has been able to leapfrog some of its competitors with an expanding tie-up with Waymo, the self-driving spin-off of Google. The new project will allow FCA to test technology from Waymo and other potential partners, as well as systems it may develop in-house.

Tech News!

“The all-new facility at Chelsea Proving Grounds will help support and enable the successful rollout of the company’s five-year plan laid out earlier this year,” said Mike Manley, who took over as FCA’s CEO just two months ago. “Our ability to test for autonomous and advanced safety technologies enables FCA to offer our customers the features they want across our brand portfolio.”

(more…)

Marchionne Treated for “Serious Illness” for a Year Prior to Death

Italian publication reports he had shoulder cancer.

by Michael Strong on Jul.26, 2018

Sergio Marchionne had been battling a "serious illness" for more than a year prior to his surgery.

Former Fiat Chrysler chief Sergio Marchionne was dealing with a long-term illness when he went in for surgery earlier this month, and the illness contributed to his death, according to multiple reports.

Marchionne had been receiving treatment for an unknown illness – an Italian publication reported he had shoulder cancer – for more than a year, according to University Hospital Zurich. The former CEO, who lived in Switzerland most of the year, was being treated for a “serious” illness, which he did not reveal to Fiat Chrysler officials.

News Now!

The hospital released a statement, it said, in an attempt to eliminate any rumors about his care prior to his death. (more…)

Former FCA CEO Marchionne Dead of Stroke at 66

A “force of nature,” the Italian-born exec rescued two car companies.

by Paul A. Eisenstein on Jul.25, 2018

Sergio Marchionne was a dynamic game-changer that many could only watch as he raced by.

Sergio Marchionne, a man more than once called “a force of nature,” has died from a stroke at the age of 66, an unexpected complication following what had been expected to be “routine” shoulder surgery last week.

In an era when many businesspeople crave anonymity, Marchionne’s public appearances often turned into events, rather than mere news conferences. And perhaps for good reason considering there are few executives who could lay claim to having saved two separate automakers, Fiat and Chrysler, before bringing them together to form a global powerhouse.

Word that something had gone wrong came around noon Eastern time on Saturday when FCA issued a brief statement revealing that the Italian-born and Canadian-educated Marchionne experienced “unexpected complications,” and that his conditions had “worsened significantly in recent hours.” Subsequent news reports from Europe indicated the executive had suffered a stroke, fallen into a coma and was placed on a ventilator at a Swiss hospital. FCA issued another terse statement indicating his passing early this afternoon in Europe.

(more…)

Marchionne Out, Manley In as Fiat Chrysler CEO

Questions about health issues blamed for Marchionne’s early departure.

by Paul A. Eisenstein on Jul.21, 2018

Larger than life: Marchionne outlined a broad 5-year-plan during a day-long June session in Milan.

Fiat Chrysler Automobiles announced on Saturday that Jeep and Ram brand boss Michael Manley will replace CEO Sergio Marchionne, who due to complications from recent surgery is gravely ill and will not return to work.

Though the 66-year-old Marchionne was known to have undergone surgery this past week for what was reported to be a shoulder problem. According to FCA’s statement, the Italian-born and Canadian-educated Marchionne experienced “unexpected complications,” while his conditions had “worsened significantly in recent hours.”

Subscribe Now!

Word of Marchionne’s departure quickly echoed through the automotive grapevine. Few industry executives have had a higher profile presence in recent decades, and even fewer could be said to have done more to shape a company in his own image as did Marchionne, who rescued the then-bankrupt Chrysler by securing a U.S. government bailout and then merging it with Italy’s Fiat S.p.A.

(more…)

FCA Planning to Plug In

After slow start, automaker reveals big plans for electrification.

by Paul A. Eisenstein on Jun.01, 2018

The production version of this Maserati Alfieri concept will use an electrified drivetrain to launch from 0 to 60 in barely 2 seconds.

Sergio Marchionne isn’t much of a fan of battery power, or at least he hasn’t been until recently. When Fiat Chrysler Automobiles launched its first all-electric model, five years ago, the CEO actually urged motorists not to buy it, admitting FCA lost about $25,000 on every one of them.

But at the automaker’s “Capital Day,” in Milan on Friday, Marchionne and his management team were far more upbeat, announcing plans to add dozens of electrified vehicles – everything from mild hybrids to pure battery-electric vehicles – into the FCA line-up over the next give years.

Electrifying!

The economics still aren’t great, noted Mark Chernoby, the automaker’s head of technology compliance, but in an era of increasingly stringent emissions and mileage regulations, it’s the only real day to meet targets being set in markets as diverse as the U.S., Europe, China and Brazil. That’s all the more so as FCA continues to migrate from traditional sedans and coupes to the less efficient SUVs and CUVs that will overwhelmingly dominate its global line-up.

(more…)

More Products, More Volume, Bigger Margins: FCA Lays Out Aggressive, 5-Year Growth Plan

Morning presentation outlines plans for Jeep, Ram, Maserati and Alfa Romeo brands.

by Paul A. Eisenstein on Jun.01, 2018

The Ram TRX will be among the new models FCA will bring out over the coming five years.

(This story has been revised to update plans for Jeep’s pickup and a midsize pickup from Ram that, CEO Marchionne now says will come to the U.S. market.)

In a sweeping presentation designed to give analysts, investors, media and potential buyers a good look at its future, Fiat Chrysler Automobiles executives are spending a day detailing their plans for the company and its various brands.

At the midway mark, as they break for lunch, they’ve already lifted the kimono far enough to show what’s coming for the Jeep, Ram, Maserati and Alfa Romeo brands and, in a nutshell, it can be summed up as more products targeting lots more volume and much bigger margins.

Breaking News!

The new five-year plan will be the last crafted under the guidance of Sergio Marchionne, the 65-year-old executive who helped pull off the pairing of two struggling manufacturers to form Fiat Chrysler Automobiles. His third five-year plan, Marchionne stressed that “The true finish line is the one always yet to come.”

(more…)

Fiat Chrysler Spinning Off Magneti Marelli Parts Business

Latest move by CEO Marchionne to “purify” automaker’s portfolio.

by Paul A. Eisenstein on Apr.05, 2018

FCA CEO Sergio Marchionne wants to "purify" the company by focusing solely on its core operations.

Fiat Chrysler Automobiles plans to spin off its nearly century-old parts-making operation Magneti Marelli a move that is part of CEO Sergio Marchionne’s strategy to “purify” the Italian-American automaker’s focus on automotive manufacturing.

The spin-off will follow earlier divestitures of FCA’s truck and tractor operations, CNH Industrial, and supercar brand Ferrari.

/about/subscribe

Business News!

“The (latest) separation will deliver value to FCA shareholders, while providing the operational flexibility necessary for Magneti Marelli’s strategic growth in the coming years,” Marchionne said in a statement. “The spin-off will also allow FCA to further focus on its core portfolio while at the same time improving its capital position.”

(more…)

Justice Dept. Offers FCA Settlement – With “Substantial” Fines for Diesel Scam

Prosecutors in Germany expand their own probe of FCA and Bosch.

by Paul A. Eisenstein on Feb.05, 2018

1 2014 Ram 1500 EcoDiesel.

The Justice Department wants to settle its probe accusing Fiat Chrysler Automobiles of rigging more than 100,000 diesel-powered vehicles to illegally pass emissions tests – but its offer would require “substantial” penalties.

Regulators have accused FCA of using a defeat device, software similar to what was used by Volkswagen, to bring down emissions of exhaust gases like smog-causing oxides of nitrogen while undergoing tests. Under real-world operation, however, the vehicles reportedly would produce substantially more of the emissions than legally permissible.

Enviro-News!

The alleged scheme has gotten FCA into trouble on both sides of the Atlantic. In German, prosecutors are ramping up their own investigation into apparent collusion between Fiat Chrysler and mega-supplier Robert Bosch. The company, which has supplied engine control technology to FCA, as well as VW and other automakers, claims it did not attempt to held the Italian-American automaker sidestep regulatory mandates.

(more…)