MILAN (Reuters) - New Fiat Chrysler (FCHA.MI) boss Mike Manley was handed extra responsibilities for the carmaker’s European business on Monday when a fellow executive quit after being passed over for the top job, adding to the challenges Manley faces.
FILE PHOTO: FCA CEO Sergio Marchionne and Alfredo Altavilla Chief Operating Officer EMEA pose next to the new Alfa Romeo car Giulia during an event at an FCA plant in Cassino, southern Italy, November 24, 2016. REUTERS/Tony Gentile/File photo
Jeep division head Manley was named on Saturday to succeed Chief Executive Sergio Marchionne, one of the auto industry’s most tenacious and respected leaders, who fell seriously ill after suffering complications following surgery.
Fiat Chrysler Automobiles (FCA) said on Monday that Alfredo Altavilla, head of its business in Europe, Middle East and Africa had resigned and those responsibilities would go to Manley on an interim basis.
Altavilla, who joined Fiat in 1990, had been a rival for the top job along with Manley and CFO Richard Palmer.
Marchionne had been due to step down next April as head of the world’s seventh largest carmaker, so the market reaction to his sudden departure was relatively limited. The shares initially fell more than 5 percent, but then pared some losses and were down 1.7 percent by 1510 GMT.
“The downside may be modest, at least in the next 12 months. But long-term concerns will build – Marchionne ran FCA in a command and control style, with constant firefighting measures,” said Bernstein analyst Max Warburton.
FCA said British-born Manley would pursue the strategy that Marchionne outlined last month.
FCA has pledged to increase production of sport utility vehicles and invest in electric and hybrid cars to double operating profit by 2022. It also unveiled bold
