Fiat Chrysler Automobiles shares were hit by the end of the Marchionne era losing 4% on the Milan bourse after Sergio Marchionne, in critical condition in a Zurich hospital, was replaced by Jeep wizard Mike Manley.
Ferrari, now led by Louis Carey Camilleri, shed 5% while CNH, now headed by Suzanne Heywood, lost 2.54%.
Agnelli family holding company Exor was also weak, shedding 4.59%.
New FCA CEO Manley’s first task is to head the Group Executive Council (GEC) today and tomorrow.
FCA share losses were cut to 1.5% later, while Ferrari, CNH and Exor also saw their losses cut. Industry and Labour Minister Luigi Di Maio said Monday leftwing attacks on former FCA CEO Marchionne on his hospital bed were “deplorable”.
“Perhaps we didn’t agree with Marchionne on almost anything but seeing a certain left which left him do what he wanted when he was powerful and attacks him now he is in a hospital bed, is really deplorable,” said the leader of the anti-establishment 5-Star Movement.
As for the future of FCA, Di Maio said “we have to be concerned but at the same time I want to reassure people that Italy is a country that will invest in cars and above all in electric cars”. Alfredo Altavilla, FCA’s head of operations in Europe, Middle East, and Africa, on Monday resigned from the group.
Altavilla was one of the managers in line to succeed Marchionne.
He reportedly decided to resign after the car group chose Manley to replace the ailing CEO.
FCA and related shares dipped again after news of Alatavilla’s resignation.
New CEO Manley has taken on the post of chief operating officer for Europe, Middle East, and Africa (EMEA) after the resignation of Altavilla, FCA sources said Monday. FCA said in a statement that Altavilla was leaving “to pursue other professional interests”.
Altavilla will work with Manley until the end of August, it said, to lend his support during the transition from ex-CEO Sergio Marchionne.
Global business development activities will be reorganised and put under Richard Palmer, Chief Financial Officer and head of Systems and Castings.
FCA and its workers have nothing to fear, Deputy Premier and Interior Minister Matteo Salvini said Monday.
“FCA will continue to be in good hands, there will be no problem either for the workers or for the future of the firm,” said the leader of the anti-migrant Euroskeptic League party.
“The workers have nothing to fear and the firm has nothing to fear,” he said.
“No one would have wanted such a traumatic and dramatic succession,” he added, condemning “bourse speculation on illnesses”.