Delivering on a promise to streamline his trans-Atlantic alliance, CEO Sergio Marchionne announced a broad realignment of the management structure that will increasingly result in Chrysler and its ally Fiat operating as one global company.
Significantly, the move will plant the nexus of power for the two automakers in the Detroit suburb of Auburn Hills, Michigan, though Fiat’s headquarters will remain based in Turin, Italy. That vote of confidence comes as a sharp rebuke to what happened during the unsuccessful and eventually abandoned merger of Chrysler and Daimler AG, where power clearly shifted to Germany.
One concern for industry analysts is whether Marchionne has moved far enough, particular when it comes to the dozens of senior executives who will continue to report directly to the Canadian-educated CEO.
“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,” or Global Executive Committee, said Marchionne. “But equally important is the fact that they reflect the multicultural geographically diverse nature of our businesses.”