Quite A Shock

It was just an unbelievable story that I saw when I went on the Internet on Sunday morning:

“Fiat Chrysler Abruptly Replaces Marchionne as C.E.O.

Sergio Marchionne, the chain-smoking, deal-making boss of Fiat Chrysler Automobiles, was an unlikely auto executive, spending much of his career in other industries. But in the last 14 years, he helped bring back two car-makers from the brink of collapse.

On Saturday, Mr. Marchionne, 66, was abruptly replaced. Fiat Chrysler revealed that he had become gravely ill since having shoulder surgery on July 5. The company named Mike Manley, 54, who is the head of the automaker’s North America operations and its Jeep and Ram truck brands, as Mr. Marchionne’s successor, effective immediately.

Fiat Chrysler declined to provide details about Mr. Marchionne’s health, but it made clear his condition had worsened significantly and suddenly.” (Neal E. Boudette, New York Times, July 21, 2018) 

Here is what was stated by Fiat Chrysler Automobiles on their website setting out what was taking place:  

"FCA Announcement   

With reference to the health of Sergio Marchionne, Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA) communicates with profound sorrow that during the course of this week 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 Board of Directors of FCA, meeting today, firstly expressed its closeness to Sergio Marchionne and his family and underlined the extraordinary contribution, both human and professional, that he has made to the Company in these years.   The Board resolved to accelerate the CEO transition process that has been proceeding over the past months and named Mike Manley as CEO. The Board will therefore propose to the next Shareholder Meeting, to be called in the coming days, that he be elected to the Board and serve as an executive director of the Company. 

In the meantime, in order to provide for his full authority and operational continuity for the company, the Board has with immediate effect granted Mr. Manley all the powers of CEO. He will also assume responsibility for the NAFTA region.   Mr. Manley and his management team will proceed with the implementation of the 2018 – 2022 Business Plan as presented on 1 June this year, a plan that will further assure FCA’s strong and independent future."

One truly has to wonder whether this situation is even worse than revealed so far. Is Mr. Marchionne really so extremely sick now so that his life expectancy is very limited?

His career has been extremely interesting considering the Company for which he has been working for so many years. He has prevented it from going broke but it is still in financial difficulty. No wonder stories came out even recently about his desire to partner with others.

From a personal perspective, I can only hope that he survives the attack which he is fighting right now.