Publications
Partners
Mercurial Italian car boss, Sergio Marchionne (59), has announced a consolidated management team to head the merging Fiat and Chrysler brands.
Since the take-over of ailing Chrysler by Fiat was initiated in 2009, Marchionne has struggled to with labour disputes (both in America and at home with Alfa-Romeo employees) as he attempts to find the greatest efficiencies to achieve the economies of scale crucial to the survival of both Fiat and Chrysler.
With the integrated management team, Marchionne intentions are now clear. "We have now reached the right moment to step on the accelerator of the Fiat-Chrysler integration."
There are essentially three key positions in the new 22-member global executive council, with Marchionne functioning as CEO of both Fiat and Chrysler.
Fiat Purchasing Chief Gianni Coda will run operations in Europe, Africa and the Middle East. Cledorvino Belini, the current head of Fiat's Brazilian operations, will lead the South American division. Michael Manley, currently in charge of the Jeep brand, will lead the Asian division.
LOFTY TARGETS
Marchionne, 59, aims to merge the carmakers to reduce costs and achieve a target of more than R300bn in revenue by 2014. Analysts regard Marchionne’s targets as extremely bullish, placing a premium on soaring demand for Chrysler products in the North American and Brazilian markets.
Fiat’s increased its Chrysler stake to 53.5% July 21, 2011. The Italian carmaker expects to hold 58.5% of the third-biggest U.S. automaker by the end of 2011 (at a cost of R12bn), after getting 5% in return for developing a fuel-efficient car for Chrysler.
The United Auto Workers union's retiree health care trust, a voluntary employee beneficiary association or VEBA, will have the remaining 41.5%.
Earlier this week, Marchionne said a formal, legal merger of Chrysler and Fiat will not take place until that issue is resolved — probably not for 12 to 18 months. But he said this move means Chrysler and Fiat are now functioning as one company.
Since the take-over of ailing Chrysler by Fiat was initiated in 2009, Marchionne has struggled to with labour disputes (both in America and at home with Alfa-Romeo employees) as he attempts to find the greatest efficiencies to achieve the economies of scale crucial to the survival of both Fiat and Chrysler.
With the integrated management team, Marchionne intentions are now clear. "We have now reached the right moment to step on the accelerator of the Fiat-Chrysler integration."
There are essentially three key positions in the new 22-member global executive council, with Marchionne functioning as CEO of both Fiat and Chrysler.
Fiat Purchasing Chief Gianni Coda will run operations in Europe, Africa and the Middle East. Cledorvino Belini, the current head of Fiat's Brazilian operations, will lead the South American division. Michael Manley, currently in charge of the Jeep brand, will lead the Asian division.
LOFTY TARGETS
Marchionne, 59, aims to merge the carmakers to reduce costs and achieve a target of more than R300bn in revenue by 2014. Analysts regard Marchionne’s targets as extremely bullish, placing a premium on soaring demand for Chrysler products in the North American and Brazilian markets.
Fiat’s increased its Chrysler stake to 53.5% July 21, 2011. The Italian carmaker expects to hold 58.5% of the third-biggest U.S. automaker by the end of 2011 (at a cost of R12bn), after getting 5% in return for developing a fuel-efficient car for Chrysler.
The United Auto Workers union's retiree health care trust, a voluntary employee beneficiary association or VEBA, will have the remaining 41.5%.
Earlier this week, Marchionne said a formal, legal merger of Chrysler and Fiat will not take place until that issue is resolved — probably not for 12 to 18 months. But he said this move means Chrysler and Fiat are now functioning as one company.