Sergio Marchionne is shuffling the management ranks and organizational chart at Chrysler Group LLC for the second time since the Fiat SpA CEO took over the corner office in Michigan this summer.
Chrysler
said Monday that Chrysler brand CEO Peter Fong and Dodge chief Michael Accavitti had both left the company, citing personal reasons and the pursuit of other interests, respectively. In their place Chrysler said it intends to split its Ram trucks out of Dodge, named product design head Ralph Gilles to lead Dodge and tapped Fred Diaz Jr., currently head of Chrysler's Denver business center, to run Ram.
Olivier Francios, head of Fiat's Lancia brand, will add the Chrysler brand to his duties.
The moves come just days after Chrysler reported September results that show vehicle sales across the company's portfolio down 39% this year. Chrysler execs have also come under fire from dealers who say the company's brands were not set up with the small cars needed to take full advantage of the government's wildly successful Cash for Clunker's program. But both Fong and Accavitti were only elevated to their current roles back in June, leaving heads scratching about their quick departure.
Marchionne in a statement offered no comment on the executive changes, but said the Ram spinoff "will allow us to protect and develop the unique nature of the product offerings within the Dodge Brand."
At first glance the decision to separate out the Ram unit seems to go against the direction most auto companies are moving, with Chrysler crosstown rivals Ford Motor Co. (NYSE:F) and General Motors Co. both shedding brands left and right. Chrysler, which is still trying to regain its foot financially, seems ill-prepared to provide the marketing dollars and other support for a new brand.
But Marchionne has said he wishes to position Dodge as a carmaker, and perhaps he believed the Ram trucks, despite their strong reputation among consumers, work against a Dodge green makeover. -
Lou Whiteman
Lou Whiteman is a senior writer covering the automotive, transportation and industrial sectors. Follow him on Twitter @louwhiteman
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