P&A Providers & Administrators
MenuMENU
SearchSEARCH

Marchionne Says Fixing Fiat Was Bigger Challenge than Chrysler

January 12, 2010
2 min to read


Chrysler Group LLC Chief Executive Officer Sergio Marchionne said he is more optimistic about the company’s recovery than he was about rebuilding Fiat SpA when he joined the Italian automaker in 2004, reported Bloomberg.com.


Chrysler beat its target for $5 billion in year-end cash, Marchionne said, giving a range between that figure and $6 billion while declining to be more specific. U.S. sales fell 36 percent in 2009, the most of any major automaker.

Ad Loading...


Marchionne, 57, cited the risk of the collapse of Turin, Italy-based Fiat almost six years ago as making that automaker’s turnaround more difficult. He became CEO of Auburn Hills, Michigan-based Chrysler in June when Fiat took a 20 percent stake as the U.S. company left a government-backed bankruptcy.


“Fiat is much larger than Chrysler,” Marchionne said. “I didn’t have the U.S. Treasury there to cut me a check and keep me in business.”


Marchionne has promised to repay government borrowing by 2014, three years ahead of schedule, while more than doubling global sales and integrating Fiat and Chrysler products, Bloomberg.com reported.


Fiat, Italy’s largest automaker, faced the prospect of failure when Marchionne took over in 2004 as the company headed for a fourth straight annual loss. He negotiated a $2 billion settlement with the former General Motors Corp. to end its obligation to buy Fiat and completed a debt-for-equity swap.


Shares of Fiat have gained 78 percent since June 1, 2004, when Marchionne was named CEO.



More Industry

Smiling man working on a new car in a Honda manufacturing plant
Industry•by Hannah Mitchell•November 10, 2026

Honda Embraces Hybrid Fever

The automaker plans a new Ohio factory, along with investments in existing U.S. and Canadian plants, to significantly boost hybrid production here.

Read More →
Magnifying glass emphasizing the words “Social and Search” with various social media platform logos surrounding it.
Industry•by Lauren Lawrence•November 10, 2026

Dealerships Must Show Up Where It Matters

How car buyers find your dealership has fundamentally changed. New evidence reveals the importance of your presence on social media, Google search, and large language models.

Read More →
Line of like-new vehicles in outdoor lot
Industry•by Hannah Mitchell•November 3, 2026

CPO Sales Could Take Off in the Right Conditions

A recent Cox Automotive consumer survey reveals the size of an undertapped market for the vehicle segment given affordability pressures.

Read More →
Ad Loading...
Small black toy car on top of a map.
Industry•by Lauren Lawrence•November 3, 2026

Global Consumer Trends Diverge

Price remains a top consideration for U.S. car buyers, and they are the most brand-loyal consumers to established automakers, according to a new survey.

Read More →
Two men and one woman standing in front of blue walled Chevrolet dealership entrance.
Industry•by Hannah Mitchell•October 27, 2026

Badger State Dealership Gets New Owner

The longtime southern Wisconsin store moved from one area auto group to another, keeping the business in Dairyland.

Read More →
Two hands, one handing off set of keys to the other.
Industry•by Lauren Lawrence•October 27, 2026

The Cycle of Negative Equity

Third-quarter data shows consumers still rolling over debt and stretching loan terms, raising their risk of remaining underwater.

Read More →
Ad Loading...
Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →