Chrysler CEO Tight-Lipped on Possible Management Structure

Stay tuned. Decisions are near.
That, in a nutshell, is the message Sergio Marchionne gave this week when talking about the yet-to-be-announced plans for the leadership of newly aligned Chrysler and Fiat.
With rumors swirling this week about how the management structure will shake out and when it will be revealed, the chief executive officer cleared the air a bit on Tuesday during Chrysler’s quarterly conference call.
One news report, in particular, suggested that the global structure will start with the respective leaders for various individual brands (Dodge, Jeep, etc.) and four regional leaders. Another outlet went as far as to suggest candidates for the positions and claimed that Marchionne would lead North America on an interim basis.
But the company’s top boss was relatively mum about any final decisions — even concerning his own role. Marchionne declined to answer whether or not he is staying on as Chrysler’s leader, saying that the inquiring media member would have to “wait for the announcement.”
“We are a few days away from being able to announce the combined leadership structure for Fiat and Chrysler,” Marchionne said during Tuesday’s call. “I’m making the final adjustments for the choices that we’re making.”
He also delved into what he has been looking for in crafting the leadership structure. Marchionne noted that after a “pretty long debut period,” it is now time to begin integration between Chrysler and Fiat.
“I think what is important for us is that we start creating a leadership team that manages this business on a global scale,” Marchionne emphasized. “I think that we have gone through a pretty long debut period here, a little over two years to get to know the organization.
“I think that we’ve established all the right relationships between the two organizations to now implement an integration plan that really highlights the strengths of the respective organizations both in terms of technical skills and in terms of commercial distribution capabilities,” he added.
The conference call followed Chrysler releasing its second quarter earnings report on Tuesday morning.
The company saw a net loss of $370 million, but posted adjusted net income of $181 million with net revenues hitting $13.7 billion (a 30-percent improvement).
The automaker moved 486,000 vehicles throughout the world in the second quarter, a 19-percent gain. The U.S. accounted for about 73 percent of those sales, with Canada next at a little more than 20 percent.
By brand, Dodge commanded the most share of global Chrysler sales at approximately 37 percent, followed by Jeep at more than 30 percent.
Moving along, the automaker’s global fleet penetration dipped from 40 percent to 32 percent on a year-over-year basis.