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Well, he was planning to retire soon anyhow.  I don't think reading implications on his long term health from the acceleration of transitions that were going to occur within the next few months makes much sense.  But I could just be overly hopeful regarding his health.

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What are you guys doing with your stock with Marchionne out?

 

Any changes? Wait and see first?

 

I wouldn't do anything here... not having Marchionne will impact the business for certain, but the bench is deep and the targets have already been set.  Maybe the next round of leaders don't have the same vision, but I don't think it changes the execution of the current plan? 

 

The Magneti Marelli spin is in process of digestion...

 

Benches can clear out quickly after a sudden lead ship change. Altavilla us gone already and I think we will see more departures.

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It’s interesting (for lack of a better word) is that they made what sounds like a permanent decision to replace him. It seems to imply that he’s not going to survive. Otherwise, I’m not sure why they wouldn’t have announced an interim CEO. They’re not being very transparent.

 

Either way, I hope he’s able to pull through.

 

The tell is that they replaced him at Ferrari too. Not at all surprised that they'd accelerate the process a bit at FCAU around health complications, but he was intended to remain the CEO of Ferrari which suggests this may be serious :/

 

What are you guys doing with your stock with Marchionne out?

 

Any changes? Wait and see first?

 

I wouldn't do anything here... not having Marchionne will impact the business for certain, but the bench is deep and the targets have already been set.  Maybe the next round of leaders don't have the same vision, but I don't think it changes the execution of the current plan? 

 

The Magneti Marelli spin is in process of digestion...

 

Benches can clear out quickly after a sudden lead ship change. Altavilla us gone already and I think we will see more departures.

 

I'm hoping that's not the case. I had heard that there was disagreement between Machionne and Exor about the successor CEO at FCAU. My guess is, with Marchionne not able to argue about it, Exor named their candidate and Marchionne's (Altavilla) departed in response. I would think that the departure due to the regime change will be limited if the new CEO is any good at what he does.

 

What are you guys doing with your stock with Marchionne out?

 

Any changes? Wait and see first?

 

Since I was expecting Marchionne to leave FCAU soon-ish anyhow, I'm holding. The new CEO is unlikely to change anything dramatic in the near term (i.e. operational improvements, net debt standing, credit worthiness/upgrades, spin-off, etc).

 

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It’s interesting (for lack of a better word) is that they made what sounds like a permanent decision to replace him. It seems to imply that he’s not going to survive. Otherwise, I’m not sure why they wouldn’t have announced an interim CEO. They’re not being very transparent.

 

Either way, I hope he’s able to pull through.

 

The tell is that they replaced him at Ferrari too. Not at all surprised that they'd accelerate the process a bit at FCAU around health complications, but he was intended to remain the CEO of Ferrari which suggests this may be serious :/

 

What are you guys doing with your stock with Marchionne out?

 

Any changes? Wait and see first?

 

I wouldn't do anything here... not having Marchionne will impact the business for certain, but the bench is deep and the targets have already been set.  Maybe the next round of leaders don't have the same vision, but I don't think it changes the execution of the current plan? 

 

The Magneti Marelli spin is in process of digestion...

 

Benches can clear out quickly after a sudden lead ship change. Altavilla us gone already and I think we will see more departures.

 

I'm hoping that's not the case. I had heard that there was disagreement between Machionne and Exor about the successor CEO at FCAU. My guess is, with Marchionne not able to argue about it, Exor named their candidate and Marchionne's (Altavilla) departed in response. I would think that the departure due to the regime change will be limited if the new CEO is any good at what he does.

 

What are you guys doing with your stock with Marchionne out?

 

Any changes? Wait and see first?

 

Since I was expecting Marchionne to leave FCAU soon-ish anyhow, I'm holding. The new CEO is unlikely to change anything dramatic in the near term (i.e. operational improvements, net debt standing, credit worthiness/upgrades, spin-off, etc).

 

Having sat in one or two discussions about this type of stuff in a corporate, I’d point out that Boards are really quite restricted in what they can/cannot say in these situations. There’s the right to privacy that needs to be balanced with the rights to information for shareholders. I think it’s safe to say though that they do not believe Sergio would be fit to return to work soon. That does not mean never, but definitely, on balance, they thought it better to create clarity now rather than having to scramble if he suddenly died, as horrible as that may sound.

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RIP Sergio.  Haven't come across a better business operator than him.

 

First earnings call without him is about to start  :'(

 

If there ever was an occasion to use the term "irreplaceable"... They will need at least three exceptional human beings just to cover the basics.

 

I wonder what kind of organizations he will be turning around at his next stop...

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RIP Sergio.

 

He has built a very strong company and we should honor his legacy by adding to our FCA positions, not by selling them. The current sell-off doesn't do justice to the financial strength and the long term vision he has engrained into the company.

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Security                               Ticker % Portfolio Fund Investor

Fiat Chrysler Automobiles N.v. FCAU 84.92 Mohnish Pabrai Mohnish Pabrai

Fiat Chrysler Automobiles N.v. FCAU 19.54 Aquamarine Capital Management Guy Spier

Fiat Chrysler Automobiles N.v. FCAU 7.03 Towle & Co Woody and Chris Towle

Fiat Chrysler Automobiles N.v. FCAU 4.49 Sequoia Fund Ruane, Cuniff & Goldfarb

Fiat Chrysler Automobiles N.v. FCAU 3.55 Tiger Global Management LLC Chase Coleman

Fiat Chrysler Automobiles N.v. FCAU 2.03 Highbridge Capital Management Glenn Russell Dubin

Fiat Chrysler Automobiles N.v. FCAU 0.43 Gotham Asset Management Joel Greenblatt

Fiat Chrysler Automobiles N.v. FCAU 0.24 AQR Capital Management Cliff Asness

Fiat Chrysler Automobiles N.v. FCAU 0.11 Renaissance Technologies James Simons

Fiat Chrysler Automobiles N.v. FCAU 0.11 Two Sigma Advisors David Siegel & John Overdeck

Fiat Chrysler Automobiles N.v. FCAU 0.09 Maverick Capital Lee Ainslie

Fiat Chrysler Automobiles N.v. FCAU 0.09 Soros Fund Management George Soros

Fiat Chrysler Automobiles N.v. FCAU 0.03 Millennium Management Israel Englander

Fiat Chrysler Automobiles N.v. FCAU 0.03 Perceptive Advisors Joseph Edelman

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Sad news about Sergio. As you say, he was highly respected by Mohnish, and held in very high regard as a businessman.

 

I notice that FCAU stock is down about 13% today, but earnings were also released, which by all accounts were a disappointment also.

 

Given that the news regarding Sergio's ill health was already known for days, how much of this drop do you think is due to the poor earnings results, and how much should be attributed to the shock and emotion regarding his death?

 

I don't currently have a position, but I am wondering if it is a wise entry point? I have considered this a couple of times, but the fact it is up so much over the past year or so already has put me off each time.

 

I posted the information above from my "cloning" watchlist. I thought others here might have some interest in the other names in the stock. Please don't let the percentages fool you in all cases though, as Pabrai and Spier run most of their money outside the US, so only a small portion of it is represented by 13F filings.

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