Ailing Marchionne replaced by Elkann as Ferrari chairman

Fiat Chrysler Automobile announced Saturday that CEO Sergio Marchionne’s health had suddenly deteriorated following surgery and that its board of directors had chosen Jeep executive Mike Manley to replace him.

The energetic leader, who has become known for his straight talk on the industry, later organized a merger of Fiat and Chrysler to create FCA and, since 2014, the company has wiped out US$12.5 billion in debt.

Marchionne, 66, a native of Chieti, Italy, wont return to the Italian-American automaker or at race vehicle manufacturer Ferrari NV after he has been out for several weeks for a health matter, FCA says.

FCA said British-born Manley would pursue the strategy that Marchionne outlined last month.

A Fiat Chrysler spokesman wasn’t immediately available for comment.

With Manley at the helm, Jeep – dubbed one of America’s top three most patriotic brands in a Brand Keys study published last month – has more than trebled sales, breaking through the one million mark previous year and becoming the main driver of profits for the entire FCA group.

Mr Marchionne, 66, had led FCA, which includes the Fiat, Chrysler, Jeep and Maserati brands, for 14 years, most notably through the impact and effects of the 2008 financial crisis, which threatened the existence of FCA and its big American rivals Ford and General Motors.

SERGIO Marchionne has made a sudden exit from the helm of Fiat Chrysler Automobiles following worsening health, with Mike Manley announced as his replacement as CEO.

Ferrari has erstwhile appointed Exor CEO John Elkann as its new Chairman, and Philip Morris Chairman Louis Camilleri as its new CEO. According to the company website, Manley was previously chief operating officer of Asia, and ran worldwide sales and global product planning for the company.

The brand also grew internationally, especially in China, under Manley.

The boards of Ferrari and CNH Industrial, which makes heavy machinery and trucks, were called urgently to meet on Saturday in Turin, Fiat’s headquarters. His credentials include running the profitable Jeep and Ram brands and he also built the company’s presence in Asia.

Marchionne, an Italian as well as a Canadian, is steeped in economics as well as philosophy. He had also been a major figure in Scuderia Ferrari’s restructuring in 2016 and bringing Alfa Romeo back into Formula 1, through the Sauber F1 Team.

Milan-based AP business writer Colleen Barry, AP Auto Writer Tom Krisher and AP sports writer Jerome Pugmire in Hockenheim, Germany contributed.