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Fiat Chrysler CEO Marchionne's health crisis forced succession scramble

Former Fiat Chrysler Chief Executive Sergio Marchionne for more than a year assured investors that he and the automaker's board were working on an orderly succession plan ahead of his expected departure in 2019. But a health crisis that left 66-year-old Marchionne incapacitated in a Swiss hospital set off a transition last week that was sudden and rushed, banking and industry sources said. The company announced on Wednesday that Marchionne had died, succumbing to complications from surgery. It emerged that Marchionne's successor was far from settled. Indeed before last week's crisis, many company executives remained in the dark, four banking sources who spoke to Fiat Chrysler executives told Reuters. The scramble to replace Marchionne led to the resignation of a senior executive who was passed over for the top job, the sources said, and exposed fissures between the Italian and North American sides of the world's seventh-largest automaker. Fiat Chrysler Chairman John Elkann named Michael Manley, head of the company's Jeep and Ram truck divisions, to replace Marchionne at an emergency meeting in Turin, Italy on Saturday. In doing so, Elkann followed Marchionne's wishes to appoint Manley his successor, two sources said. The company has portrayed Manley's appointment as the product of lengthy deliberation. "Sergio and John have always been totally aligned on the choice of Mike Manley," Fiat Chrysler's main spokesman Mike Keegan said on Tuesday, when asked whether there were differences over the succession. Elkann's office declined to comment. Manley could not immediately be reached for comment. This description diverges from what Marchionne himself told investors on June 1 during a day-long strategy presentation in Balocco, Italy. Marchionne said that he and Elkann "from time to time have these chats" about succession, but the issue would not be decided until next year. "It's a 2019 issue," Marchionne said. "So it's not going to happen until we close '18. It just won't happen." He went on to say that the company's board would not engage in a "rubber stamp process." Some analysts have also expressed skepticism that a final decision had been made. "My view is Marchionne and Elkann were still arguing about succession and had different views on the right candidate," Sanford Bernstein analyst Max Warburton said in a note on Monday, referring to the June 1 presentation.

Marchionne's pay as Fiat CEO falls to $5M

Sergio Marchionne will be buying fewer of his iconic sweaters, as his 2013 pay from Fiat took a dip from $6.24 million to an even $5 million. Marchionne, who was also CEO of Chrysler, made $307,989 thanks to some stocks and benefits from the American company, although he didn't take a salary. Of that $5 million paid by Fiat, $3.19 million came from Marchionne's fixed salary while the remaining $1.8 million was paid for hitting unspecified performance targets.
The news comes from Fiat's compensation reports, which also showed that the 61-year-old, who already owned three million shares in Fiat at the end of 2013, was able to receive an additional 2.3 million shares through a stock incentive program. According to Automotive News Europe, the additional shares would be worth about $25 million at today's prices, although so far, Marchionne has declined to claim the extra shares.
According to ANE, Fiat reported a 2013 trading profit of $4.7 billion.

Junkyard Gem: 1990 Plymouth Voyager Turbo

There was a time when the word "TURBO" was king, and even Detroit minivans came with nervous, hair-drier-boosted engines and screaming TURBO badging. Why, some of them even had manual transmissions (sadly, not this van) and in the case of the 1990 Plymouth Voyager Turbo I spotted in a Denver self-service wrecking yard, a lysergic purple paint plus a Bordello Red interior. The first-generation Voyager minivan (not to be confused with the full-sized B-series Voyager van that preceded it) was a tremendous smash hit for Chrysler. Because it came from the K-Car platform, most of the powertrain options available for other members of the many-branched K Family Tree— from the Mitsubishi Astron to the Chrysler turbo 2.5— went into the Voyagers, Caravans, and Town & Countries. The turbocharged 2.5-liter four, rated at 150 horsepower, was an option for the 1989 and 1990 Voyagers. That doesn't sound like much today, an era in which the Voyager's descendants churn out close to 300 horses, but it was lunacy for a front-wheel-drive family hauler that weighed just over 3,000 pounds. And people eventually discovered they could be made far faster than stock. Voyager shoppers could get five-speed manual transmissiona with their Turbo 2.5 engines, though few did. Still, there were more Voyagers and Caravans with the 5-speed than you might think, in part because of the manual transmission's lower cost. The slushbox didn't conquer the Chrysler Corporation Minivan World until 1996. Nissan probably had the most vividly red interiors of the late 1980s and early 1990s, but Chrysler didn't lag far behind. Look at these acres of shiny red plastic and tough, red I Can't Believe It's Not Velour! Because minivans remain useful for decades, most of them have high odometer readings by the time they get junked. So at a little over 115,000 miles, this one may have had a busted speedometer cable. Speedometers reading better than 85 mph were legal after 1981, but perhaps Chrysler decided not to encourage lead-footed hoonery among minivan drivers. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Auntie Entity pitching "the best-loved minivan in the world." Featured Gallery Junked 1990 Plymouth Voyager Turbo View 19 Photos Auto News Chrysler Dodge Automotive History Minivan/Van dodge caravan