Sergio Marchionne, the former head of Fiat Chrysler Automobiles (FCA), has died.
Marchionne, 66, suffered complications from a recent shoulder surgery at a hospital in Zurich, Switzerland, and was replaced as CEO last weekend when his ill health prevented him from continuing in a leadership role.
“Unfortunately, what we feared has come to pass. Sergio Marchionne, man and friend, is gone,” confirmed FCA chairman John Elkann, of the controlling Agnelli family, in a statement.
Marchionne joined the board of then-struggling Fiat in 2003 with no car industry experience but a reputation for turning around loss-making firms. He became CEO the following year following chairman Umberto Agnelli’s death. Agnelli was replaced by Ferrari chief Luca de Montezemelo, prompting Fiat CEO Giuseppe Morchio – who had expected the chairman job – to quit.
In 2009, Marchionne capitalised on a major opportunity to grow Fiat by acquiring a stake in Chrysler, which was in dire straits following a disastrous alliance with Daimler and the 2008 financial crisis. Fiat took a 20% stake in Chrysler in 2009, which Marchionne increased to 58.5% in 2012. Two years later Fiat bought out the remaining shares, leading to the creation of Fiat Chrysler Automobiles. The deal gave FCA greater access to the North American market, and the scale to compete against global rivals.
At the same time, Marchionne spun off Ferrari into an independent division, although he remained in charge of the sports car firm. He had intended to continue in that role for another five years, meaning his sudden departure could have more short-term impact on the firm.
Unlike FCA, Marchionne was still developing Ferrari’s future product plan, which will include the brand’s first SUV. The firm had an investor day planned for September, where it is due to give more details on its long-term plans.