FIAT-CHRYSLER. THE NEW ORGANIZATION TO THE BOD OF 25TH
25 COMMON SECTORS UNDER 25 MANAGERS AND THE WORLD DIVIDED INTO 4 AREAS
During the working weekend at the Lingotto, Sergio Marchionne did not limit himself to examining the consequences of the sentence of judge Vincenzo Ciocchetti on the Fiom appeal on Pomigliano d'Arco. Much of the two days, in fact, was dedicated to finalizing the final aspects of the reorganization of the Fiat Chrysler group, which will be presented to the board of directors to be held in Brazil on 25-26 July. The most relevant novelty, anticipated by Automotive News, consists in the creation of four regional command centres; Europe, North America, Latin America and Asia. Each area will have its own manager to whom the top managers at the head of the group's brands will also report. The latter will thus have to report to both Marchionne and the regional area manager.
The structure, however, will be halved: the heads of the various areas of activity, from research to marketing via production, purchasing and so on, will have the expertise of both Fiat and Chrysler, increasingly united on a functional and managerial level, waiting for an equity turnaround. The 25 supermanagers who will make up the steering committee that will govern the Turin-Detroit axis were personally chosen by Marchionne. It is said respecting, at least in principle, the balance between the managers arriving from the Lingotto and those of Auburn Hills. It will be this team of loyalists, according to plans, who will try to hit the target Marchionne is aiming for: 100 billion euros in turnover in 2014, or, at current exchange rates, 140 billion dollars against the 92,5 billion of the total turnover of the two companies at the end of 2010. Finally, the latest news: the consolidated accounts that will be presented to the Belo Horizonte board of directors will only take Chrysler into account as of May 24th.
THE FUNDS ASK MARCHIONNE TO DELEGATE
THERE IS THE DANGER OF REPEATING THE SGS EXPERIENCE
The substance of the operation is to delegate part of the duties of the super ceo of Fiat and Chrysler who today, working 18 hours a day, personally follows the reporting of 50 top managers: 25 in Chrysler, 25 in Turin . A pyramid with paradoxical and dangerous effects, as demonstrated by the precedent of Sgs. The leading company in quality certification, which is part of the Exor portfolio, announced disappointing results on Friday, which are impacting the accounts of the Agnelli financial company. SGS, which accounts for 17% of Exor's NAV, lost 7% on Friday and dropped 1,5% yesterday to 1.445 francs, the lowest since August 2010.
The landslide is linked to the strength of the Swiss franc which weighs on the group's competitiveness, but in the eyes of the markets, the M effect like Marchionne is no stranger. SuperSergio, "discovered" by Umberto Agnelli at SGS, supervised the Geneva-based company until the beginning of the Chrysler adventure, when he had to give up extra work, we think with great pain. Since then, things have begun to get worse, confirming the suspicion that Marchionne, very skilled in business management, is not equally good at creating a command line capable of functioning even without his direct intervention. A handicap that the large American institutional investors consider very serious.
