Sergio Marchionne, former chief executive, Fiat Chrysler Automobiles
Fiat Chrysler Automobiles announced the sudden resignation of longtime Chief Executive Sergio Marchionne, who stepped down due to health reasons. Michael Manley, the former head of Jeep Brand, was named Marchionne’s successor over the weekend.
Manley will follow through with the implementation of the 2018 – 2022 business strategy established on June 1, a plan that includes forming its captive finance arm, FCA said in a statement released Saturday.
With a company insider taking the helm, the replacement further solidifies that no strategic plans will change, Jack Micenko, bank and auto finance analyst with Susquehanna Financial Group, told Auto Finance News. “Marchionne was a dynamic leader, but the decision to form a captive runs much broader and deeper than just one person,” he said.
The bigger question, Micenko said, is to ask, “Does this have an impact on FCA and Santander’s negotiation around what the value [of Chrysler Capital] will be?” While there is an active dialogue between FCA and Santander regarding what Chrysler Capital is worth, Micenko anticipates that the change in leadership won’t derail the negotiation process.
Micenko previously told AFN that he estimates the Chrysler Capital portfolio is worth $1.2 billion, even though Santander Consumer holds $40 billion in outstandings, about $15 billion of which is related to Chrysler.
Marchionne, 66, was the chief executive of Fiat when he brought Chrysler out of bankruptcy in 2009 following the Great Recession. The company said in a statement that “unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours.”
“As a consequence, Mr. Marchionne will be unable to return to work,” the statement said.