Fiat has unveiled a new 22-man management
‘Group Executive
Council’ (GEC) for Fiat and Chrysler, led out by seven specific Chief Operating
Officers and seven brand leaders, as the integration between the Italian and
North American automakers continues to move forward apace.
“We have now reached the right moment to step on the
accelerator of the Fiat-Chrysler integration,” Fiat and Chrysler CEO Sergio
Marchionne, who remains at the top of the organisation, said in a written
statement. However, there was much bad news for Fiat, not least that Marchionne
is also retaining COO responsibility for the NAFTA region, demonstrating a clear
emphasis of geographical priorities. The press release also didn’t say where the
GEC would be based.
One constant, however, is the never-ending change in Fiat
brand division chiefs, and this historical revolving door continues apace as
Olivier François switches from running Lancia and Chrysler to take over
responsibility for the Fiat brand, replacing Andrea Formica who was headhunted
for the post from Toyota just months ago. While Lancisti will no doubt be relieved with
the departure of the least successful boss in the brand’s rich and fruitful
105-year history, the portents are not particularly promising, as an advertising
executive, Saad Chehab, has been appointed in his place. Only time will tell if
he is able to grasp an understanding of the fundamental metrics of the famous
brand – an understanding which always eluded the Frenchman.
Meanwhile, Alfa Romeo’s insignificance in the group’s future
strategy continues to be emphasised as Chief Technical Officer Harald Wester
will retain overall responsibility for the sports brand. When Wester took over
the reins from the departing Luca De Meo, it was the first time in its
century-long history the sports brand didn’t have its own dedicated chief, and
Wester is likely to continue to have little time to devote to Alfa Romeo. In his
key position as Fiat/Chrysler CTO, he will be one of the busiest managers in the
GEC overseeing the industrial integration of Chrysler Group, and ripping through
its outdated technology, platforms and powertrains continues to be an urgent
priority. As part of the latest shakeup, Wester also retains responsibility for
Fiat’s niche divisions Abarth and Maserati.
"As a result of
the acquisition of majority ownership of Chrysler Group
and consistent with the objective of enhancing the
operational integration of Fiat S.p.A. and Chrysler
Group, Fiat S.p.A. is today announcing the formation of
a Group Executive Council, similar to the one that
managed Fiat S.p.A. until the demerger of the Fiat
Industrial activities," read a statement issued in
Turin. "The Group Executive Council (GEC) is the highest
executive decision making body within Fiat outside of
its Board of Directors. It is responsible for reviewing
the operating performance of the businesses, setting
performance targets, making key strategic decisions and
investments for the Group and sharing best practices,
including the development and deployment of key human
resources."
The GEC will
have 4 main groupings. The first is composed of 4
Regional Operations Groups for car manufacturing and
sales, plus Parts and Service (MOPAR), Automotive
Components (mainly Magneti Marelli) and Systems and
Castings (Teksid and Comau). Each will be the
responsibility of a Chief Operating Officer (COO) who
will drive the organization via a regional Management
Team (subject of a separate announcement prior to
September 1, 2011). The COO’s are accountable for Profit
and Loss of their region/business, the management of
regional resources, including manufacturing and
commercial activities.
The COO’s
appointed to the GEC are as follows: NAFTA (including
Chrysler): Sergio Marchionne; Europe, Africa and Middle
East: Gianni Coda; Latin America: Cledorvino Belini;
Asia: Michael Manley; Parts and Service (MOPAR): Pietro
Gorlier; Components (Magneti Marelli): Eugenio Razelli;
Teksid/Comau: Riccardo Tarantini.
The second
grouping is reflective of the Group’s focus and emphasis
on its brands. Each of the global or potentially global
brands is represented in the GEC, and their
responsibility will be to improve and develop an
appropriate brand portfolio and to assist in the
development of adequate commercial and marketing
strategies in each of the Group’s operating regions. The
Brand Heads appointed to the GEC are as follows: Fiat:
Olivier François; Commercial Vehicles: Lorenzo Sistino;
Alfa Romeo/Abarth/Maserati: Harald Wester;
Lancia/Chrysler: Saad Chehab; Jeep: Michael Manley;
Dodge: Reid Bigland. They will be supported by the
amusingly titled job of Chief Creative Officer which
will be held by François.
The third group
is composed of industrial process leaders, who will
drive consistency and rigor across the operating
regions, and optimize the capital allocation choices the
Group will face in the years to come. They comprise of
Chief Technology Officer: Harald Wester; Design: Lorenzo
Ramaciotti; Manufacturing Technology and Coordination:
Stefan Ketter; Group Purchasing: Vilmar Fistarol;
Quality: Doug Betts; Powertrain Coordinator: Bob Lee;
Product Portfolio Management: Mark Chernoby.
The final group
is composed of support / corporate functions. These are
made up of: Business Development: Alfredo Altavilla;
Fiat Services & Holdings: Alessandro Baldi (who will
also coordinate the Groups’ sustainability initiative);
Chief Financial Officer: Richard Palmer; Chief Human
Resource Officer: Linda Knoll. The GEC will use Baldi as
the Executive Coordinator while certain functions that
are fundamental to the governance structure of the
individual companies (such as legal and internal audit)
remain independently within the ambit of the operating
companies (Fiat and Chrysler Group).
"We have now
reached the right moment to step on the accelerator of
the Fiat-Chrysler integration" added Marchionne. "These
appointments are the result of an extensive process of
evaluation of the technical and leadership skills of the
individuals who have been appointed to the GEC,"
believes Marchionne. "But equally important is the fact
that they reflect the multi-cultural geographically
diverse nature of our businesses. We recognise in these
leaders the future of Fiat-Chrysler as an efficient,
multi-national competitor in a global automotive
marketplace. It is a privilege for me to have the
opportunity to lead this group of people and see them
grow, to watch them as they transform challenge into
success and into faith in themselves and what they can
achieve."
