Fiat Chrysler boss Sergio Marchionne steps down amid health concerns

Fiat Chrysler Alliance chief executive Sergio Marchionne has been forced to step down as chief executive after complications from surgery caused a downturn in his health.

The 66-year-old, who had been at the helm for nearly 10 years, has also had to give up his role as chief executive and chairman of Ferrari, which was spun off from the larger Fiat Chrysler group as a separate company in 2015.

Briton Mike Manley, 54, who had led Fiat Chrysler in North America as well as its Ram and Jeep brands, has been appointed replacement chief executive of Fiat Chrysler with immediate effect.

Marchionne had previously planned to step down from the post in 2019 but had intended to continue as CEO and chairman of Ferrari until 2021. Board member Louis Camilleri has replaced him as chief executive of the supercar manufacturer. John Elkann, who is the chairman of Fiat Chrysler, is now the chairman of Ferrari as well.

The complications set in following an operation Marchionne had on his right shoulder on July 5, and in a statement on Saturday Fiat Chrysler said: “Fiat Chrysler Automobiles 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.”

Marchionne took over at Fiat in 2004 and orchestrated the company’s merger with Chrysler in 2009, after the American brand went bankrupt and was bailed out by the US government. Since then, the alliance has become the world’s eighth-largest auto manufacturer.

FCA includes the Italian brands Fiat, Fiat Professional, Alfa Romeo, Lancia and Abarth, as well as US brands such as Chrysler, Dodge, Jeep and Ram. Luxury manufacturers Ferrari and Maserati also sit under the FCA umbrella.