Marchionne Is a Believer in City of Detroit
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4A WWW.FREEP.COM SUNDAY, JAN. 8, 2012 ◆ COVER STORY◆CHRYSLER'S FEARLESS GENERAL Marchionnex is a believer in city of Detroit x ere’s what Italian-born, banner of Detroit. HCanadian-educated Sergio “We’re the scruffy guys, Marchionne, the CEO of Chrys- right?” he said. “We’re the ler and Fiat, thinks of Detroit: guys that have got sort of this “This town has got nothing mutt DNA because of the fact to apologize about. The quality that we ended up being here of life here is underestimated, TOM WALSH TALKS WITH and a lot of people thought that and the quality of the work that CHRYSLER CEO ABOUT we shouldn’t be here, right? I goes on here … is underesti- mean we were sort of usurping mated,” he told the Free Press HELPING THE MOTOR CITY somebody else’s right to live. in a wide-ranging interview. “We found ourselves totally Last week, Marchionne compared with the massive legitimate in sort of defending backed up that talk with action, out-migration of Chrysler’s this town because a lot of the announcing a third shift and corporate campus from High- people are incredibly skeptical 1,100 new jobs at Chrysler’s land Park to exurban Auburn of the ability of this town to Jefferson North assembly Hills two decades ago under really make a comeback. plant in Detroit, plus 150 jobs to then-CEO Lee Iacocca. “It’ll never be what it was,” reopen the nearby Conner And Marchionne is defi- he said of Detroit. “I mean, Avenue plant and build the nitely not leaving the gleaming don’t go back and try and relive 2013 SRT Viper. 504-acre Chrysler Headquar- history. It won’t happen. But Oh, and he signed on to ters and Technology Center in preserve what’s preservable chair the 2012 fund-raising aquixotic crusade to rescue and build on it. campaign for the United Way Detroit’s distressed core. “Our people have always for Southeastern Michigan. “We’re looking for ways in believed,” Marchionne said, Next move: Look soon for which we can make a contribu- “and we need to make an effort Chrysler to occupy office tion,” he said, when I asked him because I think we can help. 2009 PHOTO BY JOE WILSSENS space in downtown Detroit and how Chrysler — now majority- It’s a worthwhile cause.” Chrysler CEO Sergio Marchionne addresses employees at the Auburn Hills headquarters. Chrysler has move 50-70 people there, most- owned by Italy’s Fiat — came embraced Detroit with its “Imported from Detroit” ads and will soon move some workers downtown. ly sales staff to work with its to embrace the “Imported from Stick your face in it dealer network in the Great Detroit” theme in its celebrat- Marchionne, a classical was wowed by the quality of not care about Detroit. I think know what, I’m going to go Lakes region. Chrysler is in ed marketing campaign. music buff, said he attended a the orchestra, the venue’s that is very wrong.” down and do something in “the final stages” of concluding Post-bailout Chrysler, he Detroit Symphony Orchestra acoustics and a choir that was He noted that suburbanites downtown Detroit.’ ” adeal for that space, said suggested, has the ideal un- performance of Handel’s “Mes- as good “as any European choir didn’t seem to worry as long as Easy to say, perhaps, for a spokesman Gualberto Ranieri. derdog culture for carrying the siah” in mid-December and I’ve heard — any.” things were OK in Oakland globe-trotting executive who He declined to name the loca- Interestingly, Marchionne County. spends much of his time on tion because the contract has isn’t the only European auto “Unfortunately,” Mar- airplanes. not been signed. “IT WOULD BE GREAT IF, FROM A executive perplexed by the chionne told the Free Press, But to anyone who doubts CORPORATE STANDPOINT, A LOT OF long-term exodus of people and “there are a number of people Marchionne’s intent or ability Preserve and build investment from Detroit. that have made a lifestyle to make an impact in Detroit, Marchionne isn’t trying to PEOPLE … SAID, ‘YOU KNOW WHAT, I’M Dieter Zetsche, Chrysler choice to live on the fringes of just remember, there are le- tout himself as some sort of CEO from 2000-2005, when the the problem and not in the gions of people who thought savior for a downtrodden city. GOING TO GO DOWN AND DO SOMETHING company was under German problem. I think it would be both Fiat and Chrysler would He knows that a few dozen IN DOWNTOWN DETROIT.’ ” control, told me in 2003: “I’m great if, from a corporate be corporate corpses by now. office jobs in downtown De- always surprised that people standpoint, a lot of people stuck ❚ CONTACT TOM WALSH: 313-223-4430 OR troit are a drop in the bucket SERGIO MARCHIONNE, Chrysler and Fiat CEO don’t understand and just do their face in it and said, ‘You [email protected] MARCHIONNE: CEO is auto exec of the year Sergio FROM PAGE 1A Marchionne The man is juggling more titles than most people could remember: CEO of unplugged Chrysler, CEO of Fiat and chief operat- ing officer of the NAFTA region. He al- Fiat and Chrysler CEO Sergio so is chairman of Fiat Industrial and Marchionne took time in early chairman of CNH Global, an affiliate of December to talk to the Free Fiat Industrial. Press about Chrysler’s comeback Marchionne is a lawyer and accoun- and other issues. Here are some tant by training who took the reins at highlights. Fiat in 2004 as it languished near death. He had run a Swiss-based pharmaceu- Question: Did you get more tical company, Lonza Group, and engi- involved in the planning of neered the sale of Algroup to Alcan the Dodge Dart than you nor- when he was CEO of the Swiss alumi- mally would for most vehi- num manufacturer. But he had no prior cles? automotive management experience. Answer: Yes, because it was the He had been on the Fiat board of direc- first rollout of the Fiat endow- tors since 2003, where he impressed ment of architectures, and so the John Elkann, the heir of Fiat’s founding execution of that transfer of tech- Agnelli family. nology was crucial. It has been nearly eight months since Chrysler repaid $7.6 billion in Q: As positive a story as it’s loans from the U.S. and Canadian gov- been here on the U.S. side, ernments. you’re facing a crisis in Eu- Now, Marchionne is shooting for rope. Talk a little bit about combined annual sales of nearly 6 mil- MAY 2011 PHOTO BY JARRAD HENDERSON/DETROIT FREE PRESS how that’s going to affect you lion cars and trucks for Fiat and Chrys- Chrysler CEO Sergio Marchionne is leading the automaker’s rise from its 2009 bankruptcy, with soaring sales and the early and Fiat. ler by 2014. If he achieves his goal, Mar- repayment of government loans. He’s on the way to saving two automakers in less than a decade, having already saved Fiat. A: What Europe does going for- chionne will have saved two automak- ward remains probably the single ers in less than a decade. Marchionne Politecnico de Milano in Italy. largest issue that I and the man- “Without Sergio Marchionne, Amer- talks to then- agement team need to deal with. ica’s No. 3 automaker would almost Gov. Jennifer Chrysler roars back surely not exist today,” Steven Rattner, Granholm at Aside from the Fiat 500 stumble, Q: How does that affect the former head of President Barack Oba- the 2010 De- Chrysler is hitting most of the targets corporate convergence of Fiat ma’s automotive task force, wrote in a troit auto set in November 2009, when hundreds and Chrysler? 2011 profile of Marchionne in Time. show. Mar- of analysts, dealers and journalists A: As a general comment, it Marchionne has a tremendous ca- chionne is the gathered in Auburn Hills to hear Mar- speeds it up. pacity to devour new ideas and data, Free Press’ auto chionne’s team’s grand five-year plan. said Ralph Gilles, Chrysler’s design executive of Chrysler should finish the year with Q: What are your thoughts on chief and CEO of Chrysler’s newly the year in the about $55 billion in total sales, hitting apossible initial public of- formed SRT brand. inaugural Auto- the upper end of the forecasted range. fering and the timing of it at “He’s got some kind of a mega Penti- motive Leader- Chrysler is on track to sell 2 million this point? um processor in his brain,” Gilles said. ship Awards. cars and trucks this year, about 200,000 A: Still late 2012 or early ’13. TONY DING/ASSOCIATED PRESS shy of the 2009 plan. The Battlefield The plan calls for Chrysler’s global Q: Are you any closer now to Marchionne talked to the Free Press condly, one that will survive me.” Power of a Dynasty,” a book by Jenni- sales to increase from 1.3 million to reaching agreement with the about his management style, Chrys- Marchionne is known for taking fer Clark. 2.8 million by 2014. VEBA (the UAW’s retiree ler’s future products and its progress control of small details while granting On Sept. 14, with two hours left be- health care trust) on what the since bankruptcy from the company’s his management team wide-ranging re- fore Chrysler’s four-year labor con- ‘We’re 20% done’ value is of their stake? conference room 4E, which he calls sponsibilities.