Specifically, marchionne explained that consolidation is the key to remedying the destruction of capital. Fiat fca ceo mike manley follows sergio marchionne bloomberg. In his muchdiscussed presentation, confessions of a capital junkie 2015, the thenhead of fiat chrysler automobiles argued that escalating capital needs required industry consolidation. A longtime proponent of autoindustry consolidation, mr. Jul 25, 2018 sergio marchionne, an accountant turned auto executive who is credited with saving both fiat and chrysler, has died. Confessions of a capital junkie by sergio marchio nne. Not merging equally tough for fca, renault s of a capital junkie. Confessions of a capital junkie by sergio marchionne teambhp. Marchionne said the april presentation was not intended as a substitute for the plan or as an excuse for not.
In a slide presentation titled confessions of a capital junkie, marchionne makes the point that the industry has not earned its cost of capital over a product cycle and that consolidation. Jun 07, 2016 last april, in a manifesto titled confessions of a capital junkie, marchionne explained why fullscale consolidation of companies made sense, given what he argued were automakers consistently. Chrysler was bankrupt, and the new management had a free hand in closing plants and cutting the workforce. Confessions of a capital junkie was the title of his plea for consolidation in 2015 and. But marchionne insists that a consolidation of the auto industry is much needed. The holding company of the agnelli family, which founded fiat. Aug 06, 2018 in his now legendary confessions of a capital junkie presentation in 2015, the thenceo of fiat chrysler warned that the industry was plowing too much of its capital in the quest for tooskimpy. Fca, ford, general motors, hyundai, honda, kia, nissan, psa, renault, toyota, volkswagen. Marchionne entered the hospital for a shoulder surgery and was expected.
Jun 24, 2020 marchionne infamously consolidated his thoughts in a widely discussed, debated, and circulated 2015 presentation selfloathingly titled confessions of a capital junkie. Confessions of a capital junkie by sergio marchionne. Leading fiat from 2004 and chrysler from 2009, marchionne revived two former basket cases and created fca. Marchionne makes case for consolidation with 25page. The next berkshire hathaway woodlock house family capital. Marchionne outlines thesis urging mergers, partnerships in. Powerpoint presentation, titled confessions of capital junkie. The late sergio marchionne, chief executive officer of fiat chrysler automobiles nv. And it was not all that long ago when fiat was in bad shape. This exclusive, archived content is only available to subscribers. A tireless worker known for candor, sweaters and chain smoking, marchionne did not fit the mold of a carmakers ceo.
This is title fiat chrysler automobiles ceo sergio marchionne gave his presentation to analysts in which he criticized the sector for its inability to pay back invested capital. Fiat chrysler and renaults merger is inescapable financial times. Gm restructuring moves appear to confirm sergio marchionne. Jul 25, 2018 marchionne surprised the auto industry three years ago by laying out a thoughtprovoking vision for the global business in a presentation called confessions of a capital junkie. Apr 04, 2019 i do think elkann will try to make a deal either a merger or some kind of partnership. Marchionne portrayed the auto industrys 100 billion spending last year. Marchionne said it has taken longer than expected for dealers to get state licenses to sell the cars. May 19, 2017 marchionne has been playing an increasingly active part in the politics of formula 1 recently, something that will no doubt continue to make for a less stressful but still stimulating retirement when marchionne puts on his famous blue sweater for the last time in 2018.
In an april 29th document presented during an analyst conference call, marchionne presented his confessions of a capital junkie. Jul 21, 2018 sergio marchionne, who masterminded fiats acquisition of chrysler, is leaving for health reasons. Mar 07, 2017 marchionne stirred up similar merger controversy in 2015 when he presented confessions of a capital junkie, a thesis about the need for consolidation in the global automotive industry to. It was april 29, 2015 when sergio marchionne presented his paper titled confessions of a capital junkie. Volkswagen, europes largest carmaker, ploughs more into research and development than any other company, at 11. May 01, 2019 for example, a recent automotive news editorial concluded that the late sergio marchionne was right. Auto industry savior sergio marchionne dead at 66 hagerty media.
In his now legendary confessions of a capital junkie presentation in 2015, the thenceo of fiat chrysler warned that the industry was plowing too much. Jul 25, 2018 marchionne had no shortage of people who will disagree with him, but most colleagues, competitors and acquaintances respect his intellect. Fiat chrysler investors fear capital junkie return. Apr 24, 2019 bloombergs tommaso ebhardt discusses his new book reflecting on the career and legacy of the late sergio marchionne, former chief executive officer at fiat chrysler automobiles nv. Confessions of a capital junkie by sergio marchionne while he has been arguing that case for a while, sometimes in public and sometimes with other auto company executives, he crystallized it in a presentation he made in an analyst conference call, titled confessions of a capital junkie. Capital junkie how sergio marchionne saved fiat and chrysler 4 preface sergio marchionne, who has died at 66, took the drivers seat at a battered and indebted fiat in june 2004. Gm restructuring moves appear to confirm sergio marchionnes. Pictures from childrens books are extremely rare in financial. In a 26slide presentation entitled confessions of a capital junkie and in a conference call with analysts, mr.
Sergio marchionne, turnaround virtuoso who built fiat. In his april speech confession of a capital junkie, marchionne said that the high cost of vehicle developments for proprietary components, many not really discernible to customers, makes the industry unable to recover the cost of capital over a cycle. Enterprise value is a measure of a companys total value and is used as an alternative to market capitalization. Sergio marchionne, auto executive who brought chrysler. Thus began the start of a remarkable turnaround, which he repeated five years later when fiat took control of chrysler from the u. Marchionne, il generale senza paura da 1 miliardo di profitti lanno. Sergio marchionne was an italiancanadian businessman, widely known for his turnarounds of. The 25page powerpoint presentation titled confessions of a capital junkie makes the case for consolidation by outlining several key issues all automakers are facing, and the savings that could be garnered only through consolidation, detroit free press reports. Il discorso di marchionne al capital markets day fca. In it, the ceo chided the car industrys valuedestroying addiction to capital, with charts and graphs. Apr 18, 2016 elkann actually had the temerity to suggest to reporters last week at the company annual meeting that, what marchionne envisaged with the confessions of a capital junkie a year ago is unchanged and still actual. Toughtalking, italiancanadian sergio marchionne is an interesting player in the auto industry. Karl brauer, executive publisher of autotrader and kelley blue book, said the. May 28, 2019 however, it was marchionne who outlined in his seminal 2015 report, confessions of a capital junkie, industry consolidation.
Marchionne s thesis, bluntly articulated in his manifestocuminvestor presentation in april titled confession of a capital junkie, is nearly irrefutable. We have failed, i think, collectively as an industry to deliver value, marchionne said. Jul 21, 2018 marchionne s assessment in his 2015 confessions of a capital junkie remains correct. Chrysler turns first profit since bankruptcy the seattle times.
His father was a member of the paramilitary carabinieri police who later moved the family to toronto to be near relatives and offer. Jan 11, 2016 most infamously, in his consolidation manifesto, confessions of a capital junkie. Jul 21, 2018 marchionne will be remembered as a brilliant and provocative industry leader. Fiats new 124 spider is ceo marchionnes philosophy in. Fiat chrysler automobiles ceo sergio marchionne issued an impassioned. Oct 17, 2015 in an april 29th document presented during an analyst conference call, marchionne presented his confessions of a capital junkie. Sergio marchionnes confessions of a capital junkie linkedin. In his 2015 presentation, titled confessions of a capital junkie, marchionne spelt out in great detail his cure for the industrys valuedestroying. Jul 25, 2018 marchionnes 2015 confessions of a capital junkie treatise painted the auto industry as a laggard in enterprise value and return on investment versus other businesses. Elkann actually had the temerity to suggest to reporters last week at the company annual meeting that, what marchionne envisaged with the confessions of a capital junkie a year ago is unchanged and still actual. Marchionnes thesis, bluntly articulated in his manifestocuminvestor presentation in april titled confession of a capital junkie, is nearly irrefutable.
Fca presentation confessions of a capital junkie brian langis. His replacement is mike manley, head of the jeep and ram truck brands. Jul 25, 2018 sergio marchionne was born in chieti, italy, on june 17, 1952. Noted for his keen observations of the automotive industry, marchionnes insights ranged from frank criticism of his companys own products to a highly regarded 2015 presentation titled confessions of a capital junkie, extolling the benefits of industry consolidation. E book how sergio marchionne saved fiat and chrysler. Why sergio marchionnes confessions deserves a second look. He saved fiat, and then chrysler, combining them to create a global powerhouse.
California to allow large indoor events, update on mass. To survive the next economic downturn, he preached that more mergers and acquisitions among the top car producers would be necessary. Jul 30, 2018 capital junkie in 2015, in a conference call with wall street analysts, he criticized the industry for spending too much on product development with his presentation confessions of a capital junkie. June 17, 1952 july 25, 2018 was an italiancanadian businessman, widely known for his turnarounds of the automakers fiat and chrysler, his business acumen and his outspoken and often frank approach, especially when dealing with unpalatable issues related to his companies and the automotive industry. Three challenges impacting fca and the industry, postmarchionne. Fiat chrysler ceo sergio marchionne, a wellknown smoker. The italianborn, canadianraised sergio marchionne vaulted to instant. Marchionne made waves among peers in 2015 with a 25page powerpoint manifesto titled confessions of a capital junkie. It also inspired him to pen a 26page presentation entitled confessions of a capital junkie. Everything had been said ferdinando pennarolas blog.
Apr 29, 2015 for about 30 minutes, marchionne took analysts through confessions of a capital junkie a 25page powerpoint presentation available on the companys website that lays out the reasons why the. Nov 26, 2018 indeed, auto industry investments, as of the time of marchionne s presentation, were simply not making financial sense, with one chart showing the average return on capital investment roic for. Car company mergers are inevitable, says fca ceo marchionne. Capital junkie how sergio marchionne saved fiat and chrysler. In it, marchionne contends that the automotive industry generates.
Jul 30, 2018 e book how sergio marchionne saved fiat and chrysler. He was very close to marchionne, after all, who delivered what may be the best presentation on the auto industry ever. While he has been arguing that case for a while, sometimes in public and sometimes with other auto company executives, he crystallized it in a presentation he made in an analyst conference call, titled. The paper, dubbed an insiders perspective on the cure for the car industrys valuedestroying addiction to capital, caused a sensation. John elkann, an emerging deal maker not to be underestimated. The balance sheets of carmakers fiat and chrysler will be consolidated next week as part of the deepening integration of the two automakers, the two companies ceo sergio marchionne said. Sergio marchionne, auto executive who brought chrysler back.
Fiat chrysler still searching for a future after turbulent year iol. Sergio marchionne, auto executive who brought chrysler back from. Marchionne makes pitch for industry consolidation windsor star. Marchionnes words on ceo succession echo after his. Sergio marchionne is an unusual chief executive, a man who is not afraid to talk the language of investors and is open about the problems confronting not only his company, but also the entire automobile business. This time, the fiat chrysler ceo went a step further than usual by declaring that the latest plan for the company is essentially a oneway bet on cheap gas. Why the general motors and fca merger might be the right. Confessions of a capital junkie april 29, 2015 14 2014 roic 2014 evebitda 2 1 mainstream oems include. May 26, 2015 months of fruitless appeals and subsequent rejections from general motors co. In this post i have attached a presentation by the ceo of fiat chrysler automobile fca sergio marchionne.
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