designed to share the investment and risk

September 11, 2001. "The toughest period is behind us." "The company is safe today, but we are still a little pale, as when one is convalescent," says Sergio Marchionne, while strumming on his Blackberry.

"It's a dying which suddenly became ill." "But it is a patient who has always need attention and care," nuance Giorgio Airaudo, the leader of the Turin IMF. It recognizes not least the revolution operated by Sergio Marchionne in a little more than two years. "There was a real break in the culture of Fiat." Unlike its predecessors, Marchionne has chosen to reinvest in the car, it has shortened the hierarchical circuits and concluded a pact with workers. "For the first time in ten years, the direction of Fiat has thus recently negotiated collective wage increase with all unions. The agreement includes the grant in 2007 to all staff of a premium annual 700 euros gross, provided that the objective result of 2006 is required. After seeing its blend of 55,000 to 46,000 employees in four years, mainly before the arrival of Marchionne, Fiat Auto start to hire and Turin plans to become the "capital of engines friendly. The constructor took the 29 of Ferrari which he had to yield to Mediobanca in 2002. And, despite recent rumors of transfer of Iveco, Fiat (180.000 employees in total) has no intention to abandon its CNH agricultural machinery branch or subsidiary of industrial vehicles.

Lean hierarchy

"Sergio Marchionne has introduced previously unknown transparency and clarity in Fiat." "This is the first leader to have dared to declare that the problem of competitiveness of Italian companies was not fundamentally linked to the cost of labour," said trade unionist Giorgio Airaudo, one of the first to criticize the inadequacy of the Agnelli family investment in Fiat Auto. Barely appointed at the head of Renault, Carlos Ghosn had entrusted to his Torino counterpart that he too often had the impression that the financial markets wanted a bloodbath. "It is true." Manufacturers today face the obsessions of a large part of the financial, convinced analysts that downsizing are, by definition, positive (...) "Regardless of that direct labour represents only 6 to 7 of the cost total product and that, therefore, the real causes of the massive losses of Fiat Auto must be sought elsewhere", noted the administrator delegate of Fiat, at the last meeting of the Industrial Union in Turin, local employers.

Even policies begin to cite it as an example. "We would have a Marchionne in politics!", has launched the Secretary of the Communist Refoundation Party and President of the Chamber of Deputies, Fausto Bertinotti, who sees in him a new prototype of industrial "informed". "Let us be clear, Marchionne has restated financial Fiat, but it has not saved it, everything simply because it does not have the means, not being the owner," nuance Giorgio Airaudo.

The conformist Marchionne surprise: instead of drawing a line on factories, it eases especially hierarchical structures by reducing the number of executives from 700 to 500. "An Executive Fiat has neither schedule nor weekend." "If he wants to return home to 6 hours to play golf, he is wrong business", says grant: "the commitment not to close any mill in Italy helped us establish a relationship of trust with the unions." "But even if I had removed half of the workforce of Fiat, I I would have no solution".

In the future, it intends to pursue its strategy of targeted cooperation (with Ford, Suzuki, PSA Peugeot Citroën, Severstal, Tata Motors...) designed to share the investment and risk. "It is the only way to move forward, as Jean - Martin Folz, at PSA, was the first to see." We did so with Ford and we will continue to do so with all those who can help us to reduce investment costs. "A way to stand out from the doctrine of the Renault boss on major mergers. "Carlos Ghosn is a great leader, but I did not understand its alliance with GM attempt." Unlike him, I do not think that the size is essential. This may play if the company is well managed. In the case of GM, the effect size does not necessarily helped him. "However, the launch of the new Bravo will be crucial to Fiat because"the presence in the C segment is vital for the future of the brand. "

"Fell in love with the product.

As the Indian manufacturer Tata, the sole industrial partner represented in the Board of Directors of Fiat, Sergio Marchionne does not strengthen the relationship with him. "There is a relationship of trust with Ratan Tata, who is an outstanding personality." It is sufficient to see him walking the streets of Bombay to realize. With or without Fiat, Tata will penetrate the European market. We are willing to help if needed. The Chinese also will arrive before the end of this decade. Needless to seek to avoid.

Once his mission is accomplished, Marchionne could grow tired of his role as Jean-Martin Folz "The troika Marchionne-Montezemolo-Elkann works well", summarizes a relative of the family. Of course, but until when Considered a specialist in "swings of business", Marchionne do will remain not necessarily bolted in Turin, even though it feels today a soul of renovator. Monk-soldier modernization or informed mercenary With earnings of EUR 7.8 million for 2005 (including a bonus of $ 4.6 million), slightly higher than that of Luca Di Montezemolo (7,03 EUR), it is in any case one of Chief Executives best paid of the peninsula. Rectifier of the Turin Group, who will present on 8 November its new strategic plan, to a market share of two-digit in Europe in 2010, against 7.8 today, do not hurry to release the bar. "It seems that he has fallen in love with the product," said Giorgio Airaudo. After the success of the Grande Punto, if future models keep their promises, Sergio Marchionne could choose to bind her fate to that of the first industrial group Italian. "I have no intention to leave." If the Group meets its goals for 2010, this will become a veritable war machine.