July 25, 2018 By The Editor
The first of Sergio Marchionne achievements was gaining the trust of the company, the shareholders, the stakeholders, the employees.
He used to eat in the cafeterias with the drivers and bodyguards, getting symphathy and esteem from the italian people used to the preposterous excesses of Fiat managers.
One time he showed up unannounced to a manufactury plant, and after a brief check around. As the director showed up he told him: “you can smell a laziness wind around here”.
For its industries, he had the same passionate attitude of the best Ray Kroc.
He liked to personally verify all the aspects of the production, distribution chain. One saturday morning he showed up incognito at one of their car-sellers in Turin just to check the selling procedures. He had to longly await a salesman who treated him with condescending superiority, that he consequently had fired.
A 2 billions masterpiece in Sergio Marchionne achievements.
His first masterpiece was when, almost alone, fled to the GM headquarters, convincing them to pay 1,55 billions of euros, just to free themselves form the buy contractual condition “put”.
As he said: “there are many ways to step back from a negotiation. The most important thing is to stay calm, let them understand that you could come back a the table.”
After 60 continuous hours of negotiations with the GM top management, he settle a deal gaining the amount of 2 billion dollars at the time, for that realease.
That was the first little treasure he uses to start the Fiat launch.
Personal friend of governors and state chiefs, from Merkel to Rousseff, Obama to Trump. He acknowledged that, to realize its plans, Fiat should have not depended upon any government.
He puts back on track a bankrupt Chrysler, in a hero mission which was even given up by the germans of Daimler that had even a lot of muscles and financial resources. Nevertheless, the project planned by Marchionne works out perfectly.
He nurtured the impossible ambition to possess the company without paying a dime and he succeded.
Ho moved his CEO office from the far top management towers to the low fourth floor of the building devoted to design.
In just two years, the new manufacturer of Auburn Hills upon the guide of Marchionne, rises from bankruptcy, come back to its first annual profit, re-opens the employment lists.
Later on the factories go back to full employment and Chrysler has been completely acquired, without even paying a dime.
On top of it, the move of the Mexican production, with the manufacturing lines moved back from Mexico to the States, in Michigan.
A masterpiece of Sergio Marchionne achievements with the obvious blessing from President Donald Trump.
He transformed in a feasable project what others didn’t even dare to think.
With a never seen before sprain, he tears off the Fiat company from the italian industry association Confindustria.
This allows him to sign a special company contract with the labour unions, where the retributions are tied with productivity. This was another absolute novelty for the italian industrial companies.
Immediately after that the production lines of the Panda model are moved from Poland back in Italy at the Naple’s area Pomigliano.
Despite the continous doubts from the analysts, always asking him why, against any economy math, he keeps five factories open in Italy, he always repeated:
“you cannot have a quality product if you don’t have a quality life for your employees”.
Now he leaves FCA with zero debts and a 2018 closing with 4 billions euro of cash accounts.
The new Exor galaxy controls companies with a stock capital higher than 60 billions euro.
That’s over ten times the value of the overall companies grouped in Fiat before Marchionne’s arrival.
The last industrial plan, graphically signs another of Sergio Marchionne achievements.
As a further demonstration of courage, vision, it could be entitled “the overtaking”.
In fact, FCA thanks to him reached over a billion profit, overtaked General Motors.
Top of its segment, Ferrari has now a net worth of 24 billions dollars.
Even more impressive are the Sergio Marchionne achievements with Ferrari luxury car producer under his guidance.
Its stock capital value ha tripled reaching 22 billions of euros. It’s an almost impossible growth for the Maranello company striclty guided by Marchionne since 2014
The “red” brand is now exchanged in stock market with a multiple volume close to 38 times its profits, one of the highest amongst all the luxury brands.
With a profit at about a third of its sales, Marchionne’s Ferrari seems an unstoppable golden goose. Those are numbers which could make you think you can live ironclad in a bank vault or in a spaceship travelling with the autopilot.
But the “autopilot” would not be the legacy of the Marchionne’s culture.
We can still hear him repeating:
“always embrace the change, always prepare for the change”.