Bloomberg News is reporting that Chrysler/Fiat CEO Sergio Marchionne told reporters the two auto companies will have a single management structure soon.
Marchionne’s comments came following a speech to the Swiss-American Chamber of Commerce in Zürich.
This would be another step toward the eventual merger of Fiat and Chrysler. Fiat consolidated Chrysler’s financial and operating results into its own starting at the end of May. Marchionne wants to merge the carmakers to trim costs and reach his goal of over 100 billion euros ($140 billion) in combined revenue by 2014. However, Marchionne said in May that a merger isn’t likely until at least 2012.
Marchionne is already working on management changes and plans to make announcements “in terms of leadership pretty quickly….” He declined to say if the announcements would be made when Fiat releases its quarterly earnings report on July 28. Combining the senior management of Chrysler and Fiat should lead to some interesting handicapping among industry watchers. Alfredo Altavilla, Olivier Francois and Pietro Gorlier are all Fiat transplants with long histories with Marchionne. Altavilla is currently CEO of Iveco, but sits on the Chrysler board. Reid Bigland, the new CEO of Dodge, has done well as the head of Chrysler Canada and Fred Diaz just added CEO of Chrysler de Mexico to his titles. Of course, every member of the Chrysler team has a strong case for a top spot.
Not reported by Bloomberg, but covered in Il Solo 24 Ore, the Italian financial newspaper, were other comments Marchionne made to the Chamber. He expressed concern about the state of the European economy, especially Italy, which is seen as the next potential financial trouble spot in the European Union.
“Yes. The system is at risk, Marchionne was quoted as saying in response to question. “It is a serious issue which will not cease if the European leaders do not find solutions with all parties involved.”
“To live in a country like Italy,” Marchionne went on to say. “is not easy, but I am confident that Italy can find the right answers to the crisis. I am an optimist by nature.”
Marchionne’s concerns about the Italian economy causes one to recall previous comments he made about the possibility of the merged company leaving the city where it has been for more than 110 years and relocating its headquarters to the United States. Though such a move has been denied repeatedly by both Marchionne and Fiat chairman John Elkann, Marchionne is still fighting with the Italian labor unions over new work rules and has drawn a line in the sand saying billions of euros in new investments in Italian plants and products could go elsewhere if the unions don’t agree to new contracts. The powerful FIOM metalworkers’ union is already suing Fiat to have an already approved contract overturned; a loss in the Italian courts and a rocky home economy could be the catalyst for a major change
as reported by Allpar
