Sergio Marchionne's hiring of former Volkswagen AG executive Laura Soave to reintroduce the Fiat brand in the U.S. breaks with the Chrysler Group LLC chief executive officer's strategy of promoting from within.
Soave, 37, was named on March 10 by Auburn Hills, Michigan- based Chrysler to lead the return after Fiat's 27-year absence. Soave is the first Chrysler brand manager brought from outside the company or partner Fiat SpA since Marchionne took over in June, becoming Chrysler's youngest executive in the role.
"The fact that he's bringing in Soave from outside shows just how much is riding on the introduction," said Giuseppe Berta, who teaches business at Milan's Bocconi University. "It shows that Marchionne wanted to reinforce the management team by bringing someone in from outside."
Soave's hiring adds to brand managers under age 50. Marchionne, CEO of both Fiat and Chrysler, has tried to create distinct product identities through marketing and given each brand manager profit-and-loss responsibility.
Marchionne may have found it difficult to find the right executive inside Chrysler or Turin, Italy-based Fiat to introduce a foreign brand to U.S. customers seeking small cars similar to Bayerische Motoren Werke AG's Mini Cooper, said Ian Fletcher, an automotive analyst with IHS Global Insight Inc. in London.
'Bright' Executives
"He usually strips out everyone he thinks are unsuitable and brings up a bunch of bright guys," Fletcher said. "They are probably looking for someone who can think outside the box a little bit."
Fiat fell 4 cents, or 0.4 percent, to 9.36 euros in Milan trading. The stock has declined 8.7 percent this year, valuing the company at 11.3 billion euros ($15.6 billion).
Chrysler declined a request for interviews with Soave or Marchionne.
In addition to Soave, the brand managers include Pietro Gorlier, 47, Mopar parts and service; Olivier Francois, 48, Chrysler brand and marketing; Ralph Gilles, 40, Dodge and design; Fred Diaz, 44, Ram trucks and sales; and Michael Manley, 46, Jeep and international sales.
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