Fiat finally owns a majority stake in Chrysler, but CEO Sergio Marchionne’s work isn’t over yet. In fact, he’s busy rolling out a complete global reorganization that’s seen as the first step towards fully merging both companies into a global empire.
Bloomberg reports that the CEO’s latest move includes the creation of a group executive council to oversee both companies. According to a statement released by Fiat, the council comprises 22 managers (including Marchionne), all of whom will carry the most influence outside of the board of directors.
“We have now reached the right moment to step on the accelerator of the Fiat-Chrysler integration,” Marchionne said in a prepared release.
The report also states that four regional chiefs will manage Fiat and Chrysler operations in North America, South America, Europe and Asia. Two current Fiat executives have been appointed to Europe and South America, while Michael Manley, manager of the Jeep brand, will oversee the Asia region. Marchionne will manage North American operations, which underscores the region’s importance to his future plans. The remaining members of the group executive council are executives who worked closely with the CEO and helped contribute to the acquisition of Chrysler in 2008.
“The integration process is going extremely fast, as is Marchionne’s style,” Gianluca Spina, chairman of the business school at Polytechnic University of Milan, told Bloomberg. The changes will take effect on September 1.
The reorganization and ultimate merger are seen as a key step in the CEO’s plans to rake in $140 billion in profits by 2014. Marchionne hasn’t announced exactly when the complete merger will occur, although he has hinted that it won’t happen entirely in 2011.