Posts Tagged ‘Fiat CEO Sergio Marchionne’

Marchionne Gets $30.5 Million in 2013 from Fiat

Total package puts him higher than Barra, but lower than Mulally.

by on Mar.11, 2014

FCA Chief Sergio Marchionne's reported compensation for 2013 from Fiat SpA was $30.5 million.

As it turns out, Sergio Marchionne does not need any salary from Chrysler to be among the highest paid automotive CEOs in metro Detroit.

Marchionne took home $5 million in 2013 as CEO of Fiat SpA, but it’s not the salary, it’s stock options that put him near the fore: 2.3 million in options worth about $25.5 million based on the Italian automaker’s current share price, according to a remuneration report released by Fiat yesterday. He hasn’t exercised any of the options.

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His income breaks down as $3.2 million of salary and $1.8 million in bonuses. That total was $1.3 million less than his earnings for 2012. His total compensation in 2012 was $18.9 million – or 14.5 million Euros. Since the two companies have finally completed their merger, the newly minted FCA will likely report a single figure for 2014. (more…)

Marchionne Pushing for Fiat-Chrysler Listing on NYSE

CEO plans to lay out plans for new automaker to board.

by on Jan.24, 2014

Might Chrysler House in downtown Detroit be the new headquarters for Fiat-Chrysler?

The evolution of what will be Fiat-Chrysler continues as CEO Sergio Marchionne will tell the Fiat SpA board that the New York Stock Exchange should be the primary market for the newly merged company’s stock: moving it further away from Italy, Fiat’s ancestral home.

In a meeting expected to take place next week, Marchionne is expected to put forth a series of recommendations to the board. In addition to listing on the NYSE, he’s likely to recommend the company’s headquarters be located in the U.S. as well as having a location in the U.K. for tax purposes.

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Listing on the NYSE is important because it puts the company within view of potential borrowing partners, Marchionne said previously. This could be important as he continues to push Fiat from a regional European automaker to now Fiat-Chrysler, a global player of scale that can compete with bigger makers like Volkswagen AG, General Motors and Toyota. (more…)

Marchionne Agrees to Three-Year Contract Extension

Board now focusing on location of new headquarters.

by on Jan.13, 2014

Sergio Marchionne agreed to a three-year contract extension to head up Fiat-Chysler.

While it debates what continent will house the headquarters of the newly merged Fiat-Chrysler, the company’s board cleared up its near-term leadership questions by extending Sergio Marchionne’s employment contract for three years.

Marchionne told reporters at the North American International Auto Show today that succession planning is a major issue for Chrysler, which is one of the key reasons he agreed to the extension. Previously he had suggested he would be ready to leave by the end of 2015.

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“This issue about succession is a big, big issue in the group,” he said. “I am very proud of the leadership group we have assembled. But I’ve got to make sure there are replacement parts on hand. We worry about these things all the time. (more…)

Ferrari Puts Brakes On Production

Move designed to ensure the aura of exclusivity.

by on May.09, 2013

Ferrari is cutting back on production this year to maintain the brand's exclusivity.

Nothing turns heads quite like the sight of a Ferrari roaring down the road. The excitement and awe stems from the fact there aren’t many around. To ensure that continues, Ferrari plans to cut sales to fewer than 7,000 vehicles this year to maintain that aura of exclusivity around the storied brand.

“The decision we have made to sell fewer cars this year despite stronger sales is due to protect brand’s exclusivity,” Ferrari Chairman Luca Cordero di Montezemolo told reporters during a session at the company’s fabled factory in Maranello, Italy.

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Ferrari produced 7,318 cars last year, he said.


Chrysler to display with Fiat at Frankfurt Show

The company has quiet since its emergence from bankruptcy.

by on Aug.25, 2009

Sunrise or sunset for the newly formed Chrysler Group?

Sunrise for the newly formed Chrysler Group?

There is good news of sorts for people trying to understand how the new Chrysler Group will revive itself going forward. The privately held company will have a display of vehicles as part of Fiat’s display at the Frankfurt Auto Show in September. There will be no press conferences, though, in keeping with the company’s external silence since it emerged from bankruptcy in June.

Chrysler Group LLCwas formed in June 2009 from an “alliance” with the Fiat Group, and produces Chrysler, Jeep, Dodge, Mopar and Global Electric Motors (GEM) brand vehicles and products. Observers note that it has been internally focused in trying to sort itself out since then.

Traditionally Fiat, Chrysler’s new owner since June, has a significant presence at the Frankfurt auto show through press conferences and media interviews. In addition, we would speculate that around this time it would be ideal for the Group to launch itself publicly. It needs to generate some positive momentum.

Chrysler has been unusually silent given its long standing flare for media events, publicity stunts and new model introductions. It stopped its long-standing monthly sales calls after it emerged from bankruptcy, cancelled a new model preview, and was absent from the Woodward Dream Cruise.

Jim Press, the chief sales executive who was brought in from Toyota, has not been out in public, except to defend the closing of 789 dealers in front of a critical U.S. Congress, leading to media speculation that he would leave the company by year’s end.

The company, of course will not comment on such speculation, but a spokesperson did confirm the self-imposed silence as the company establishes procedures on how it will run itself under what are five new owners with Fiat’s Chief Executive Officer Sergio Marchionne, also as CEO of the new Chrysler Group.

In addition,  the newly formed nine-member Board of Directors is itself new, with three directors from Fiat, four directors appointed by the U.S. Government, one director designated by the Canadian Government and one director appointed by the United Auto Workers’ Retiree Medical Benefits Trust. Automotive experience on the board is scant.

Frankfurt Bound!

Frankfurt Bound!

Unlike Ford Motor and General Motors Company, Chrysler, whose sales are off 42% year-to-date through July, has not announced any adjustments to its production since its plants came back online at the end of July, when it had only a 42-day supply of vehicles.

Chrysler’s position is thought to be tenuous at best by many analysts since its car sales are much weaker than average and large truck and sport utility vehicle sales have collapsed. New offerings with Fiat’s help are at least two years away. It is in essence a company built around three vehicle lines — Dodge and Chrysler minivans, the Dodge Ram pick-up truck, and the Jeep Grand Cherokee sport utility vehicle.


Fiat “Prepared to Walk” on Chrysler

UAW key to saving deal, says Fiat CEO.

by on Apr.15, 2009

CEO Sergio Marchionne says Fiat is "prepared to walk" away from alliance talks with Chrysler unless unions grant significant new concessions.

CEO Sergio Marchionne says Fiat is "prepared to walk" away from alliance talks with Chrysler unless unions grant significant new concessions.

Chrysler’s white knight is ready to gallop off into the sunset.  Fiat Group SpA will walk away from alliance talks with the floundering U.S. automaker unless Chrysler’s unions agree to make significant concessions, Fiat CEO Sergio Marchionne says.

Pulling together a deal with the Italian automaker is critical to Chrysler’s survival.  Late last month, President Barack Obama rejected the maker’s request for additional aid, giving it only until April 30th to either line up something with Fiat or another potential partner.  Barring such a deal, industry observers believe the White House will allow Chrysler to sink into bankruptcy, very likely to be broken up.

“Absolutely, we are prepared to walk.  There is no doubt in my mind,” Marchionne told the Toronto Globe and Mail, in an interview published today.  “We cannot commit to this organization unless we see light at the end of the tunnel.”

Subscribe to TheDetroitBureau.comThe light Marchionne apparently wants to see would be a signal from the United Auto Workers Union and Chrysler’s other labor groups that they are willing to accept further concessions that would sharply drive down manufacturing costs.  The American automaker also reportedly still needs to strike a deal with reluctant bondholders.  They’ve been dragging their feet on concessions of their own – in part because there’s hope that in a bankruptcy, they might actually be able to recoup a higher return than is currently being offered by Chrysler.