Detroit Bureau on Twitter

Posts Tagged ‘marchionne chrysler’

Fiat – Chrysler’s Marchionne “Done” in 2018

Will leave future turnarounds to the “young punks.”

by on Oct.08, 2014

Sergio Marchionne may have reason to smile as he considers his retirement in 2018.

After helping lead the smallest of Detroit’s automakers out of bankruptcy while also turning around its Italian partner Fiat, CEO Sergio Marchionne says he’s close to “done” and ready to find something a little less challenging to do.

Marchionne’s key goal will be completed this coming weekend with the formal merger of the two companies into the new Fiat Chrysler Automobiles, or FCA, which will have its headquarters in London while being incorporated in the Netherlands.

Subscribe Now!

That leaves Marchionne the challenge of putting in place the company’s new business plan which will take it through to 2018 when he apparently plans to retire, he said during an interview with the Bloomberg news service.

“I am not going to do any more turnarounds,” he said, adding that, “I’m done. Let some of the young punks do it.”


Big Payday for GM’s Akerson

But payout is a pittance compared to Ford’s Mulally.

by on Mar.20, 2012

GM Chairman and CEO Akerson won't be able to cash out for several years.

General Motors Chairman Dan Akerson is getting a big payday – though he won’t be able to cash the check for a couple of years.

Akerson, who also serves as GM’s chief executive has been awarded 76,249 shares of restricted stock, according to paperwork the maker has filed with the federal government –which still owns about a third of GM’s stock and has oversight on pay issues for the company’s top executives.

Based on the recent price range for GM stock that would work out to somewhere around $2 million — $1.94 million, to be precise, based on what the shares closed at on Monday.  But if GM stock comes close to the $33 it commanded when the maker held its November 2010 IPO that would add more than $500,000 to the payout.

News Now!

Akerson will have time to wait and see, as he cannot cash in for several more years.  He can convert two-thirds of the award to common stock on March 15, 2014 and the rest a year later.  And he will have to remain a continuous GM employee for the duration or risk losing his stock bonus.


Marchionne Takes Home $0 from Chrysler – but $18.9 mil from Fiat

The night job pays off.

by on Mar.15, 2012

Why is this man smiling? An $18.9 million paycheck certainly helps.

In an era of executive excess, Chrysler CEO Sergio Marchionne made headlines, earlier this month, when it was reported he took no compensation for his work at the U.S. automaker last year.  That was all the more impressive compared to the news, that same day, that Ford Chief Executive Alan Mulally had received $58.3 million in stock alone for 2011.

But for those wondering how deeply Marchionne might have to dig into his pockets to cover the reported $3.5 million home he recently purchased in the Detroit suburbs there’s no reason to worry.  While he didn’t get money from Chrysler he did more than okay wearing his other hat, as CEO of the U.S. maker’s Italian partner Fiat.

Subscribe Now! It's Free!

In all, Marchionne took home 14.5 million Euros, or $18.9 million,  last year, including $3.2 million in salary and another $15.69 million in stock that vested last year.  Major companies like Ford and Fiat like to use stock as an incentive, the argument being that with enough shares an executive like Marchionne or Mulally will be motivated to maximize investor value.


Mulally Makes Millions – Marchionne Zip – for 2011

Ford exec not limited by government oversight.

by on Mar.07, 2012

Ford CEO Alan Mulally had a good pay day this week.

Ford Motor Co. has clearly benefited from the fact that it was the only Detroit automaker to skip a government bailout.  So has its CEO Alan Mulally, who received a whopping $58.3 million in stock as part of a long-term incentive package.

Stay in the Know!

Many analysts believe Ford has drawn in a sizable number of customers willing to reward it for finding its own way through the industry’s worst downturn in decades – unlike its cross-town rivals.  But there was another penalty for taking government aid totaling around $85 billion during 2008 and 2009, the companies covered by the federal automotive bailout face strict limits on the compensation senior executive can make without Washington’s approval.


Chrysler Stock Offering on Indefinite Hold

“It’s not imminent,” says Marchionne.

by on Mar.07, 2012

The long-awaited Chrysler IPO isn't likely to happen anytime soon, cautions CEO Sergio Marchionne.

Analysts and potential investors who’ve been waiting for a Chrysler stock offering are going to have to keep waiting – possible for quite some time, the maker’s CEO is cautioning.

After Italian automaker Fiat effectively took control of the U.S. maker following its 2009 bankruptcy, Sergio Marchionne signaled he would stage an Initial Public Offering in relatively short order.  The IPO has since been pushed back repeatedly by Marchionne – CEO of both Fiat and Chrysler.

Stay in the Know!

In a Detroit radio interview, the Canadian-educated executive this week said he will not authorize the stock offering until the time is right.  In fact, he told an Italian newspaper last month, that Chrysler just might skip the IPO entirely.

“It’s not imminent,” Marchionne told Detroit talk station WJR when asked about when Chrysler might take itself public again.


No Diesels for Small Chryslers, Says Marchionne

Fiat not interested in acquiring Opel.

by on Jan.12, 2012

While the Jeep Grand Cherokee is set to get a new diesel, Chrysler won't be using the high-mileage technology in its small cars.

Chrysler will begin building the diesel version of the Jeep Grand Cherokee at the Jefferson North assembly plant in Detroit early in 2013. But Fiat/Chrysler chief executive officer Sergio Marchionne said he doesn’t expect diesel engines to move from large trucks and SUVs into smaller passenger cars in the U.S.

The necessary emission controls make the engines too expensive, Marchionne said during an appearance at the Automotive News World Congress. The Canadian-born executive also said Chrysler won’t begin preparing the Jefferson North plant to build a new Maserati SUV — using a Ferrari engine — until 2013 and dismissed speculation Fiat could be lining up to make a bid for Opel.

It's Free!

He also said the industry has a social responsibility to improve fuel economy. “The fuel efficiency challenge is one of the biggest issues facing the industry, and not just because of daunting government regulations. As an industry, we need to look beyond the narrow interests of our industry and embrace ecological responsibility because we owe it to future generations,” he said.


Is Marchionne Signaling Plans to Base in Detroit

Exec will add "fundraiser" to his long To-Do list.

by on Jan.06, 2012

Marchionne currently splits his time between Italy and the U.S. Will he be focusing himself on Detroit going forward?

As the saying goes, home is where the heart is. Thus, Chrysler CEO Sergio Marchionne’s decision to serve as the campaign chair for the United Way of Southeastern Michigan is certain to be parsed for its underlying significance in a multinational company, such as Fiat/Chrysler, with deep roots on both sides of the Atlantic.

Sure, most of the job will be handled by his staff, cynics might suggest, but, still, he could have begged off completely because of his overloaded travel schedule.

Your News Source!

But Marchionne, who went to school in Windsor, across the river from Detroit, has elected to get involved in the task of helping the United Way raise money for worthy but unglamorous causes such as Boys and Girls Clubs.


Marchionne Outlines Plan to Repay Chrysler’s Loans

Move takes maker step closer to IPO.

by on May.02, 2011

Why is this man laughing? Sergio Marchionne outlines details of the government loan payoff.

Chrysler will use a mix of loan money, new debt securities and a line of credit to repay the $7.5 billion it owes to the U.S. and Canadian governments, the maker announced today, providing the first details on a payback plan first announced last week.

At about the same time, the U.S. maker’s Italian partner, Fiat SpA, will invest $1.27 billion in order to increase its stake in Chrysler from 30% to 46%.

Sergio Marchionne, the CEO of both automakers, has indicated he expects to meet another hurdle set by the 2009 federal bailout to add yet another 5% stake, which would give Fiat a full 51% share of Chrysler.  Sometime after that, depending on Chrysler’s financial health and the strength of the stock market, the maker is expected to stage an IPO that would mark its return to public trading.

Subscribe Now!

Details of the loan repayment were announced today at the same time Chrysler revealed it has earned $116 million during the first quarter of 2011, its first net profit since emerging from bankruptcy in June 2011.  (For more on Chrysler’s earnings report, Click Here.)

The goal is to pay off $5.8 billion owed to the U.S. government by June 30th, along with another $1.7 billion due to the Canadian treasury.  Alternative financing will come from three components:


Chrysler Chief Marchionne Working for Free – Well, Not Quite…

CEO taking no pay from Chrysler…but he’s not going broke.

by on Mar.01, 2011

Would he change sweaters if he were getting paid more?

Zero. That’s how much money Sergio Marchionne received while serving as the chief executive officer of the Chrysler Group in 2010, according to a new filing with the Securities Exchange Commission.

But the CEO isn’t going broke or doing it as a charitable write-off.  Marchionne was granted 361,446 shares of Chrysler shares tentatively valued at $600,000 for his year of work. The Canadian-educated executive also received $4.8 million from Chrysler’s Italian partner, Fiat, in 2010 — which is about 27% less than he made in 2009.

Your Inside Source!

Chrysler reported that the compensation of four other senior executives was a bit more lucrative, up front, than for Marchionne.

Richard Palmer, Chrysler’s chief financial officer, made $500,000 salary and another $520,00 from restricted stock units and phantom share awards, while Holly Leese, Chrysler’s general counsel, was paid $455,000 plus an additional $460,750 in restricted and phantom shares, while executive vice president Nancy Rae’s package totaled $455,000 and an additional $453,000 in restricted and phantom shares.  Michael Manley, president of the Jeep brand and head of international operations, made $410,000 in salary and  $408,000 is restricted and phantom shares.


Marchionne Trips Over Quips

But CEO's actions speak louder than words.

by on Feb.09, 2011

Loose lips sink...? CEO Marchionne has had to back off on a number of recent comments.

It’s been a week of backpedaling for Sergio Marchionne, the outspoken CEO of both Chrysler and its Italian affiliate, Fiat.

Seldom shy about expressing himself, the Canadian-educated executive has been tripped up by a series of quips, starting with remarks made, over the last week, that have managed to upset Canadians, Jewish groups, Italian unions, the City of Turin and the Italy’s teetering govenrment, which summoned Marchionne to Rome for an explanation of his loose talk.

The trouble began following a San Francisco speech during which he used the often anti-Semitic term, “shyster” to describe what he saw as excessive interest rates applied on the loans offered by the U.S. and Canadian governments, in 2009, to save Chrysler from liquidation.

Your Automotive Source!

The executive next suggested that Fiat might move its headquarters to Detroit, which became huge news across Italy.  It didn’t help that Marchionne had, back in November, made disparaging remarks about his homeland on the popular Italian television show, “Che tempo chef a,” insisting Fiat “cannot continue…forever” operate in a country where, he insisted, a lack of productivity is considered an acceptable norm.