Sergio Marchionne Explained

Sergio Marchionne
Birth Date:17 June 1952
Birth Place:Chieti, Italy
Death Place:Zürich, Switzerland
Alma Mater:University of Toronto
University of Windsor
Osgoode Hall Law School
Spouse:Orlandina [1]
Partner:Manuela Battezzato[2] [3]
Children:2 sons

Sergio Marchionne (pronounced as /it/; 17 June 1952 – 25 July 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 (FCA), 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 some of its government loans.[9] [10] In 2014, Fiat and Chrysler merged into a new holding company, Fiat Chrysler Automobiles, now the seventh-largest automobile manufacturer in the world.[11]

Following complications from surgery, Marchionne resigned from all of his positions in July 2018,[12] and he died a few days later.[13] The American business channel CNBC described Marchionne as a "legend" of the automotive industry,[14] while the British newspaper Financial Times considered him as having been "one of the boldest business leaders of his generation".[15]

Early life

Marchionne was born in Chieti, Abruzzo, Italy,[16] the son of Concezio Marchionne, from Cugnoli (Abruzzo), and Maria Zuccon from Carnizza (today Krnica, Croatia) near Pula 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 German troops 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.[17]

At 13, Marchionne emigrated with his family to Toronto, Ontario, Canada, where they had relatives.[18] Carrying dual Canadian and Italian citizenship, he spoke fluent English, French and Italian. Marchionne was a Canadian certified general accountant (FCGA),[19] barrister, and a fellow of the Certified General Accountants of Ontario.[20]

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[21] as well as a law degree from Osgoode Hall Law School of York University (1983).[22] He received an honorary doctorate from Walsh College (2013).[23]

Career

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.[24]

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.[25] [26]

From 1994 to 2000, he worked at Algroup (Alusuisse Lonza Group Limited) based in Zürich, where he became Chief Executive Officer in 1997. 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).[27]

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.[28]

Chrysler

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 Robert Nardelli.[29]

In February 2011 Marchionne sparked widespread controversy in the US 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".[30] 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."[31] 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 on 1 August 2014.[32]

Following the 2015 Volkswagen emissions scandal, in January 2017, the EPA also accused Fiat Chrysler of installing software that allowed excess diesel emissions to go undetected in their EcoDiesel engines. Marchionne denied any wrongdoing. He was critical of the EPA and rejected comparisons between Fiat Chrysler and Volkswagen.[33] [34] [35] [36]

Death

Marchionne last appeared in public on 26 June 2018 in Rome, when he presented a Jeep to the Carabinieri, Italy's military police.[37] 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 that he would not return due to post-surgical complications.[38] After further serious complications,[39] on 21 July 2018, Marchionne resigned from all his positions and was replaced at FCA, Ferrari, SGS and CNH.[40] [41] [42]

He died on 25 July 2018 at age 66,[43] most likely from complications related to underlying cancer.[44] Some reports claimed he had suffered from an invasive shoulder cancer.[45] According to the University Hospital of Zürich, Marchionne had been treated for a "serious illness" for over a year before his death, which was also noted by his partner's father Pier Luigi Battezzato. He had also quit smoking since his treatment started. FCA did not have knowledge of his health condition until just weeks before his death.[46] [47]

He was survived by his partner Manuela Battezzato, his two adult sons, Alessio and Tyler, and his former wife Orlandina.[48]

Public image

Marchionne earned a reputation for an outspoken and often blunt approach.[49] [50] [51]

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.[52] [53] On 1 June 2018, Marchionne wore a necktie to celebrate the FCA debt repayment. Reporters noted that he had not been seen wearing a tie since 2007.[54]

In a 2009 Forbes interview, Massimo Vecchio, an analyst with Mediobanca, commented on the contrast and Marchionne's controversial management style:[55]

He was a chain-smoker until a year before his death.[56]

Legacy

The Istituto Sergio Marchionne high school was opened in Amatrice on 6 November 2019 by John Elkann, CEO of Ferrari. It was rebuilt after the August 2016 Central Italy earthquake, financed largely by the sale of the 500th La Ferrari.[57]

Honors and awards

See also

Further reading

External links

Notes and References

  1. Web site: Sergio Marchionne, la compagna Manuela sempre al suo fianco . Today.it . 20 October 2017 . 25 July 2018.
  2. Web site: Sempre a fianco di Sergio. 23 July 2018. LetteraDonna.
  3. Web site: Sergio Marchionne, who saved Fiat and Chrysler, has died . Cnbc.com . 30 March 2015 . 25 July 2018.
  4. Web site: Europe: Sergio Marchionne re-elected president of ACEA . Automotive World . 12 January 2007 . 1 September 2012.
  5. Web site: UBS Plans to Cut Chairman's Next Term After Subprime Losses.. International Herald Tribune. 27 February 2008.
  6. News: Fiat CEO's merger confession called 'spot on'. Ebhardt. Tommaso. 26 May 2015. The Detroit News. https://web.archive.org/web/20150730172445/http://www.detroitnews.com/story/business/autos/chrysler/2015/05/26/marchionne-investors/27953865/. 30 July 2015. live. Bloomberg News.
  7. Web site: Fiat Burning Rubber. https://web.archive.org/web/20070209024847/http://www.businessweek.com/autos/autobeat/archives/2007/01/fiat_on_a_roll.html. dead. 9 February 2007. BusinessWeek. 17 May 2007.
  8. Web site: Fiat Net Profit Soars as Automaker Promises the First Dividend Since 2002. 25 January 2007. MSNBC.com. 17 May 2007.
  9. News: Liberal government writes off $1.1B US loan to Chrysler, plus interest, docs show. CBC. 2018. 8 June 2021.
  10. News: Ontario government writes off $445M loan to Chrysler. CBC. 2018. 8 June 2021.
  11. News: Fiat Chrysler to spin off Ferrari, issue $2.5 billion convertible bond. Reuters. 29 October 2014. 11 July 2015.
  12. News: Jackie Wattles . Chris Isidore . Peter Valdes-Dapena . Sergio Marchionne, auto legend, steps down as CEO of Fiat Chrysler . CNN . 21 July 2018. 22 July 2018.
  13. News: Zurigo, morto a 66 anni Sergio Marchionne – Tgcom24 . 25 July 2018 . Tgcom24 . it.
  14. Web site: Auto industry legend CEO Sergio Marchionne dies at age 66 . Cnbc.com . 1 October 2009 . 25 July 2018.
  15. News: Sergio Marchionne, car company executive, 1952–2018 . Financial Times . 25 July 2018 . The Financial Times Ltd.. 25 July 2018. Sanderson . Rachel .
  16. Web site: "Marchionne Sergio CV" (PDF). Fiat Group. Retrieved January 2, 2012. . 1 September 2012 . dead . https://web.archive.org/web/20120717005506/http://www.fiatspa.com/en-US/governance/management/FiatDocuments/cv/Marchionne%20Sergio_CV_GEC_02-01-2012_eng.pdf . 17 July 2012 .
  17. Web site: Marchionne, il nonno infoibato, l'Istria nel sangue: il dramma di una famiglia italiana . Secoloditalia.it . 23 February 1976 . 25 July 2018.
  18. Web site: Emigrazione Abruzzese. https://web.archive.org/web/20110722023047/http://www.abruzzoemigrazione.it/e_view.asp?E=44. 22 July 2011.
  19. Web site: 2011 CGA Fellowship Recipients . Cga-canada.org . 12 December 2011 . 1 September 2012.
  20. Web site: Sergio Marchionne: ecco chi lo sostituirà in FCA. Luca. Scialò. 24 July 2018. Web Economia.
  21. Web site: Sergio Marchionne BComm '79, MBA '85, Alumni Association, University of Windsor.
  22. Web site: York in the Media. Y-File. 17 May 2007.
  23. Web site: Sergio Marchionne. www.fcagroup.com. 9 August 2017.
  24. Web site: Sergio Marchionne, il duro in pullover che ha rivoluzionato la Fiat. 22 July 2018. Linkiesta.
  25. Web site: Sergio Marchionne – Il Foglio . Ilfoglio.it . 21 July 2018 . 25 July 2018.
  26. Web site: Sergio Marchionne obituary: a great life, in pictures. www.autocar.co.uk. en. 25 July 2018.
  27. Web site: Adnkronos . Marchionne, un destino fra Europa e America . Notizie.tiscali.it . 25 July 2018.
  28. Web site: July . Bloomberg . A Timeline of Sergio Marchionne's Transformative Fiat Chrysler Tenure . Fortune.com . 21 July 2018 . 25 July 2018.
  29. Web site: Noah Joseph . BREAKING: Marchionne confirmed as post-bankruptcy Chrysler CEO . Autoblog.com . 1 September 2012.
  30. News: Fiat in firestorm for floating Detroit move. Rachel Sanderson and John Reed. 6 February 2011. Financial Times. 7 February 2011.
  31. News: Chrysler's Marchionne Says Calling Loans 'Shyster Rates' Was Inappropriate. Dan Hart. February 5, 2011. Bloomberg News. February 7, 2011.
  32. Web site: APPROVAL OF CROSS-BORDER MERGER TO CREATE FIAT CHRYSLER AUTOMOBILES N.V. (FCA). www.fcagroup.com. Fiat S.p.A.. 20 September 2015.
  33. Web site: EPA accuses Fiat Chrysler of excess diesel emissions. David Shepardson. Bernie Woodall. 13 January 2017. Reuters. 7 March 2017.
  34. News: E.P.A. Accuses Fiat Chrysler of Secretly Violating Emissions Standards. Hiroko Tabuchi. Hiroko Tabuchi . 12 January 2017. 7 March 2017. The New York Times.
  35. Web site: EPA accuses Fiat Chrysler of cheating emissions laws. Nathan Bomey. 12 January 2017. USA today. 7 March 2017.
  36. Web site: Fiat Chrysler accused of emission cheating by U.S.. Tom Krisher. Michael Biesecker. 12 January 2017. The Toronto Star. 7 March 2017.
  37. http://www.autonews.com/article/20180721/OEM02/180729913 'FCA paints grim picture of Marchionne's health,'
  38. Web site: Fiat Chrysler Paints Grim Picture of Marchionne's Health. 21 July 2018. 23 July 2018.
  39. Web site: Sergio Marchionne had embolism during surgery.. 25 July 2018. Detroit Free Press.
  40. News: Fiat Names Jeep Chief Manley to Replace CEO Marchionne. Bloomberg News. 21 July 2018 .
  41. News: Fiat, Ferrari boards to meet on Marchionne succession – report. Reuters. 21 July 2018.
  42. News: Fiat Chrysler to name Jeep's Manley to replace Marchionne as CEO -.... Reuters. 21 July 2018.
  43. Web site: Di Paolo Griseri . E' morto Sergio Marchionne, l'uomo che salvò l'auto italiana . 25 July 2018 . Repubblica.it . 25 July 2018.
  44. News: Fiat's Talks With Renault Propelled by Changes in Leadership. Sylvers. Eric. 28 May 2019. Wall Street Journal. 28 May 2019. Kostov. Nick. en-US. 0099-9660. Rogers. Christina.
  45. Web site: Report: Sergio Marchionne Currently in a Coma With Irreversible Brain Damage. Jerry. Perez. The Drive. 24 July 2018 .
  46. Web site: Marchionne knew of 'serious illness' for a year. 26 July 2018. Automotive News Europe.
  47. Web site: New book details the final days and legacy of Sergio Marchionne. 24 April 2019. Automotive News.
  48. Web site: Bianca Carretto . Marchionne: la compagna Manuela Battezzato, i figli, l'Italia. Il suo volto segreto . 25 July 2018 . Corriere.it . 25 July 2018.
  49. News: Sergio Marchionne has nothing to fear from the Ontario government. Kristine Owram. 14 July 2015. Financial Post. 7 March 2017.
  50. Web site: The New Iacocca: Chrysler CEO Marchionne Is Already Sorry He Opened His Mouth. 7 February 2011. CBS News. 7 March 2017.
  51. Web site: Chrysler chief Sergio Marchionne: straight shooter, tough negotiator. Dana Flavelle. 7 March 2014. The Toronto Star. 7 March 2017.
  52. Web site: Sergio Marchionne, Who Revived Fiat and Chrysler, Dies at 66 . The New York Times . Neal E. Boudette and Elisabetta Povoledo . 25 July 2018 .
  53. Web site: Why Chrysler boss Sergio Marchionne always wears black. 22 November 2011. thestar.com.
  54. Web site: FCA CEO Sergio Marchionne surprises audience with this fashion choice. Randy. Essex. Detroit Free Press.
  55. Web site: Can Sergio Marchionne Save Chrysler?. Javier Espinoza. 14 April 2009. Forbes. 7 March 2017.
  56. News: Fiat Chrysler C.E.O. Marchionne Is Replaced After Falling Gravely Ill . The New York Times . Neal E. Boudette . 21 July 2018 .
  57. https://www.ferrari.com/en-EN/articles/amatrices-school-named-in-honour-of-sergio-marchionne Amatrice school named in honor of Sergio Marchionne
  58. Web site: Sito web del Quirinale: dettaglio decorato . Quirinale.it . 1 September 2012.
  59. News: Illness ends career of Sergio Marchionne, the CEO who liked to fix things. Flak. Agnieszka. 22 July 2018. Automotive News Canada. 22 July 2018. Barbaglia. Pamela.
  60. Web site: 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. Marketizer.com. QuimiNet.com / e-Industria.com /. www.quiminet.com. es. 25 July 2018.
  61. News: Sergio Marchionne, il manager in maglione che ha cambiato la Fiat – Panorama. Degl'Innocenti. Chiara. 25 July 2018. Panorama. 25 July 2018. it-IT.
  62. Web site: Laurea ad honorem a Sergio Marchionne. 13 March 2024. it-IT.
  63. News: Sergio Marchionne, 2011. NPR.org. 25 July 2018. en.
  64. News: MSU announces fall commencement speakers. University. Michigan State. MSUToday. 25 July 2018. en.
  65. Web site: Marchionne viene contestato per aver ricevuto il premio Pico 2010 . Corrieredibologna.corriere.it . 1 September 2012.
  66. Web site: Chrysler Group Chairman and CEO Sergio Marchionne Awarded Deming Cup by Columbia Business School. Fiat Chrysler Automobiles. 4 November 2011. 7 March 2017.
  67. Web site: Chrysler Group Chairman and CEO Sergio Marchionne Awarded Global Leadership Award by Business Council for International Understanding. Chrysler Group. LLC. www.prnewswire.com.
  68. Web site: BCIU Gala . dead . https://web.archive.org/web/20120624122031/http://bciu.org/wip05/public/gala.asp . 24 June 2012.
  69. Web site: Hennick Medal for Career Achievement : Hennick Centre. hennickcentre.ca. en-US. 25 July 2018.
  70. Web site: SAE Foundation Industry Leadership Award.. 27 July 2018. en.
  71. News: FCA's Marchionne Named SAE Foundation's 2015 Industry Leadership Awardee.. 21 October 2014. Automotive World. 24 July 2018. https://web.archive.org/web/20180724234427/https://www.automotiveworld.com/news-releases/fcas-marchionne-named-sae-foundation%C2%80%C2%99s-2015-industry-leadership-awardee/. 24 July 2018. live. Detroit, Michigan. en.
  72. News: SAE Foundation Names Ford Motor Company's Mark Fields 2016 Industry Leadership Award. 9 December 2015. 24 July 2018. https://web.archive.org/web/20180724232956/https://www.forwardgeek.com/article/SAE-Foundation-Names-Ford-Motor-Companys-Mark-Fields-2016-Industry-20151209. 24 July 2018. live. Detroit, Michigan. en.
  73. Web site: Sergio Marchionne laureato in Ingegneria meccatronica. 13 March 2024. Webmagazine.unitn.it. it-IT.
  74. Web site: In Carlos Tavares, Fiat Family Finds Heir to Marchionne Legacy . Tommaso . Ebhardt . 31 October 2019 . www.bloomberg.com . subscription.

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