Sergio Marchionne
Encyclopedia
Sergio Marchionne is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
) is an international manager best known for his turnaround of the Italian automotive group Fiat and, more recently, for managing the US automotive group Chrysler from bankruptcy to profitability. Marchionne currently holds several roles of major importance, including serving as CEO of Fiat S.p.A.
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
, Chairman and CEO of Chrysler Group LLC, and Chairman of Fiat Industrial S.p.A. and its principal subsidiary CNH. He has also served two consecutive terms as Chairman of the European Automobile Manufacturers Association
European Automobile Manufacturers Association
The European Automobile Manufacturers Association is the main lobbying and standards group of the automobile industry in the European Union. It is the follow on organization to CCMC in 1996....
(first elected in January 2006). He is the Chairman of Swiss-based SGS
Société Générale de Surveillance
SGS S.A. provides inspection, verification, testing and certification services. With more than 67,000 employees, SGS operates of over 1,250 offices and laboratories around the world....
, is on the Board of Directors of cigarette
Cigarette
A cigarette is a small roll of finely cut tobacco leaves wrapped in a cylinder of thin paper for smoking. The cigarette is ignited at one end and allowed to smoulder; its smoke is inhaled from the other end, which is held in or to the mouth and in some cases a cigarette holder may be used as well...
and tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
producer Philip Morris International
Philip Morris International
Philip Morris International is an international tobacco company, with products sold in over 160 countries. In 2007, it held a 15.6% share of the international cigarette market outside of the USA and reported revenues net of excise taxes of $22.8 billion and operating income of $8.9 billion.Until...
, and was a member of the Board of Directors of the global banking group UBS
UBS AG
UBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
for a number of years up to 2010, appointed Vice Chairman (non-executive) in February 2008.
Marchionne is widely recognized for turning around Fiat Group to become one of the fastest growing companies in the auto industry, returning it to profitability in 2006 less than two years after taking the helm. In 2009, he was instrumental in Fiat Group forming a strategic alliance with the ailing US automaker Chrysler, with the support of the US and Canadian governments and trade unions. Less than 2 years later, following its emergence from Chapter 11, Chrysler returned to profitability (Q1 2011) and repaid all government loans (May 2011). Under Marchionne's leadership, Fiat and Chrysler have come together to create a leading global player in the automobile sector, leveraging the product portfolios, purchasing power and distribution capabilities of both partners.
In addition to returning Italy's number one industrial group to financial health, Marchionne has also been a major protagonist for change in industrial relations in Italy, with the model established at several group plants precipitating a shift (including legislative) toward the practice of regional and local bargaining over the traditional model of national agreements.
Biography
The son of Concezio Marchionne, from CugnoliCugnoli
Cugnoli is a comune and town in the province of Pescara, in the Abruzzo region of central Italy.The village existence is first recorded in the 12th century, and the medieval walls surrounding the original settlement can still be seen....
(Abruzzo
Abruzzo
Abruzzo is a region in Italy, its western border lying less than due east of Rome. Abruzzo borders the region of Marche to the north, Lazio to the west and south-west, Molise to the south-east, and the Adriatic Sea to the east...
Italy), and Maria Zuccon from Carnizza (today Krnica, Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
) near Labin
Labin
Labin is a town in Istria, Croatia, with a town population of 6,884 and 11,703 in the greater municipality ....
in Istria
Istria
Istria , formerly Histria , is the largest peninsula in the Adriatic Sea. The peninsula is located at the head of the Adriatic between the Gulf of Trieste and the Bay of Kvarner...
. 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
Barban
Barban is a small town and municipality in the southern part of eastern Istria, Croatia, 28 km northeast of Pula, above the Raša river valley; elevation 229 m....
in Istria, while his Uncle Giuseppe Zuccon was killed by the Nazis the same year. In 1945, when the region was occupied by the Yugoslav Army, Marchionne's parents moved to Chieti
Chieti
Chieti is a city and comune in Central Italy, 200 km northeast of Rome. It is the capital of the Province of Chieti in the Abruzzo region...
in Abruzzo
Abruzzo
Abruzzo is a region in Italy, its western border lying less than due east of Rome. Abruzzo borders the region of Marche to the north, Lazio to the west and south-west, Molise to the south-east, and the Adriatic Sea to the east...
, where Sergio was born.
At age 14, Marchionne emigrated with his family to Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, where they had relatives. As a result, he has dual Canadian and Italian citizenship and speaks fluent English and Italian. He is a Canadian Chartered Accountant, barrister, and a member of the Canadian Institute of Chartered Accountants. He completed his undergraduate studies at the University of Toronto
University of Toronto
The University of Toronto is a public research university in Toronto, Ontario, Canada, situated on the grounds that surround Queen's Park. It was founded by royal charter in 1827 as King's College, the first institution of higher learning in Upper Canada...
and went on to earn an MBA from the University of Windsor
University of Windsor
The University of Windsor is a public comprehensive and research university in Windsor, Ontario, Canada. It is Canada's southernmost university. It has a student population of approximately 15,000 full-time and part-time undergraduate students and over 1000 graduate students...
in 1980 and Bachelor of Laws
Bachelor of Laws
The Bachelor of Laws is an undergraduate, or bachelor, degree in law originating in England and offered in most common law countries as the primary law degree...
(LLB) from Osgoode Hall Law School of York University
Osgoode Hall Law School
Osgoode Hall Law School is a Canadian law school, located in Toronto, Ontario, Canada and affiliated with York University. Named after the first Chief Justice of Ontario, William Osgoode, the law school was established by The Law Society of Upper Canada in 1889 and was the only accredited law...
in 1983.
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.
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.
From 1994 to 2000, he worked at Algroup (Alusuisse Lonza Group Limited) based in Zurich, where he became Chief Executive Officer in 1997. He
then took the helm of the Lonza Group Ltd. in Basel, after its spin-off from Algroup, serving first as Chief Executive Officer and Managing Director (2000–2001) and then as Chairman (2002).
In February 2002, he became Chief Executive Officer and Managing Director of SGS S.A.
Société Générale de Surveillance
SGS S.A. provides inspection, verification, testing and certification services. With more than 67,000 employees, SGS operates of over 1,250 offices and laboratories around the world....
of Geneva and, 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.
In June 2009, when Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
emerged from Chapter 11 bankruptcy protection, Fiat Group received a 20% stake in Chrysler Group LLC and Marchionne was appointed CEO, replacing existing CEO Robert Nardelli
Robert Nardelli
Robert Louis "Bob" Nardelli was the chairman and chief executive officer of Chrysler. He had earlier served in a similar capacity at The Home Depot from December 2000 to January 2007. Prior to that, Nardelli had risen to become one of the top four executives at General Electric...
http://www.autoblog.com/2009/05/07/breaking-marchionne-confirmed-as-post-bankruptcy-chrysler-ceo/. 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.
Personality and Management Style
He is well known for his unique (some say quirky) personality and management style. Marchionne has a preference for dealing directly with managers and other employees and is reported to have been perplexed and even shocked, when he first arrived at Fiat, by the practice of other executives of communicating with each other through their secretaries. Confirming his preference for a more collegiate style, at Chrysler his office is located on the same floor as the engineering department, as opposed to the top-floor penthouse where the CEO's office was traditionally located.With regard to personal interests, Marchionne is an aficionado of the arts and classical music and often listens to music as he works, keeping a large collection of CDs in his office. In conversation and public addresses, he also frequently quotes artists, musicians, historical figures and politicians. He is multilingual and speaks in a baritone
Baritone
Baritone is a type of male singing voice that lies between the bass and tenor voices. It is the most common male voice. Originally from the Greek , meaning deep sounding, music for this voice is typically written in the range from the second F below middle C to the F above middle C Baritone (or...
voice with a clear North American accent, despite his Italian heritage. He is a chain smoker, and eschews the traditional suit in favor of green or black pullover sweater
Sweater
A sweater, jumper, pullover, sweatshirt, jersey or guernsey is a garment intended to cover the torso and arms. It is often worn over a shirt, blouse, T-shirt, or other top, but may also be worn alone as a top...
s worn on top of a button-down shirt and black slacks. This was parodied in an issue of Car and Driver
Car and Driver
Car and Driver is an American automotive enthusiast magazine. Its total circulation is 1.31 million. It is owned by Hearst Magazines, who purchased prior owner Hachette Filipacchi Media U.S. in 2011...
magazine which showed a spoof Marchionne doll that could be dressed in a variety of outfits, all of which, however, were identical copies of the same outfit.
A supercar enthusiast and proficient driver who frequently takes to the track with a Ferrari, Maserati or other high-performance vehicle manufactured by the group he manages, Marchionne suffered some embarrassment when he wrecked his personal Ferrari 599 GTB Fiorano
Ferrari 599 GTB Fiorano
The 599 GTB Fiorano is an Italian gran turismo produced by Ferrari. It is the brand's two-seat flagship, replacing the 575 M Maranello in 2006 as a 2007 model....
while driving in his adopted Switzerland in 2007.
Honors and Awards
- Cavaliere del Lavoro – 1 June 2006
- Honorary Doctor of Laws from the University of Windsor (Canada), 15 October 2005
- Honorary Doctor of Business Administration from the University of Toledo (Ohio), 8 May 2011
- Masters honoris causa from the CUOA Foundation (Italy), 30 November 2007
- Degree in Economics honoris causa from the Università degli Studi di Cassino, 5 October 2007
- On 27 May 2008, he received a degree ad honorem in Industrial Engineering and Management from Polytechnic University in Turin (Italy) for:
- On 30 July 2010, US President Barack Obama toured a Chrysler plant in Detroit with Sergio Marchionne. During that visit he praised Marchionne, thanking him for his excellent work in turning around the US automaker..
- On 5 November 2010, Marchionne was awarded the Premio Pico della Mirandola..
- On 2 November 2011, Marchionne was awarded with The Deming CupThe Deming CupThe Deming Cup is an annual prize presented by The W. Edwards Deming Center for Quality, Productivity, and Competitiveness at Columbia Business School....
2011 for operational excellence presented by W. Edwards Deming Center at Columbia Business SchoolColumbia Business SchoolColumbia Business School is the business school of Columbia University in Manhattan, New York City. It was established in 1916 to provide business training and professional preparation for undergraduate and graduate Columbia University students...
. .
Controversy
A controversial figure by virtue of his unorthodox management style, in February 2011, Marchionne sparked widespread controversy in the U.S. when he remarked at the J.D. Power & Associates International Automotive Roundtable that Chrysler's bail-out loansEmergency Economic Stabilization Act of 2008
The Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008 (Division A of , commonly referred to as a bailout of the U.S. financial system, is a law enacted in response to the subprime mortgage crisis...
from the U.S. government carried "shyster
Shyster
A shyster is a slang word for someone who acts in a disreputable, unethical, or unscrupulous way, especially in the practice of law, politics or business.-Etymology:The etymology of the word is not generally agreed upon...
rates". Expressing his discontent with the very high interest rates Chrysler had been obliged to pay, he also drew criticism from several quarters for use of the Yiddish term "shyster" which was felt to have an anti-Semitic overtone.
Marchionne immediately issued a public apology, stating "I regret the remark and consider it inappropriate" 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."
See also
- Carlos GhosnCarlos GhosnCarlos Ghosn, KBE , born 9 March 1954, is a Brazilian-Lebanese-French businessman who is currently the Chairman and CEO of Yokohama, Japan-based Nissan and holds the same positions at Paris-based Renault, which together produce more than one in 10 cars worldwide...
, CEO who led a similar turnaround at Nissan. - Lee IacoccaLee IacoccaLido Anthony "Lee" Iacocca is an American businessman known for engineering the Mustang, the unsuccessful Ford Pinto, being fired from Ford Motor Company, and his revival of the Chrysler Corporation in the 1980s...
, CEO who led a similar turnaround at ChryslerChryslerChrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
.