Fiat Chrysler Automobiles NV denied an Italian media report that Chairman John Elkann will convene top managers in Turin today to discuss how to temporarily redistribute the powers of convalescing Chief Executive Officer Sergio Marchionne.
A spokesman for Fiat said there is no meeting to discuss redistributing Marchionne's powers, but wouldn't comment further.
The 66-year-old CEO's duties will be discussed at the meeting, website Lettera43.it reported Friday, citing confidential sources it didn't identify. Chief Financial Officer Richard Palmer, Europe head Alfredo Altavilla and Jeep chief Mike Manley are contenders to take over for Marchionne.
Fiat shares fell 2.3 percent in Milan, giving the company a market value of $29.8 billion.
Marchionne will likely miss the carmaker's Wednesday earnings call with analysts as his recovery from shoulder surgery is taking longer than originally expected, a person familiar with the matter told Bloomberg News. Palmer will probably lead the call, the person said, asking not to be identified discussing confidential matters.
Marchionne has run the manufacturer for 14 years, rescuing it from potential collapse and engineering Fiat's acquisition of U.S. carmaker Chrysler. The company said on July 5 that he underwent an operation on his right shoulder and was expected to require "a short period of convalescence."
Marchionne, who moved from Italy to Canada with his family when he was 14, has transformed the two struggling carmakers into a global player. He first saved Fiat from the brink of bankruptcy and than rescued Chrysler in 2009. The executive, who calls himself "a fixer," has managed to boost the carmaker's value by more than 10 times by boosting profit and separating businesses such as the supercar maker Ferrari.
The CEO has not appeared in public since June 26, when he spoke at a Rome event.
Business on 07/21/2018