The late Sergio Marchionne and his turnaround of Chrysler

1. Introduction

In 2009, the Chrysler Automaker faced bankruptcy and required a government bailout in order to survive. At that time, the company was led by its CEO Sergio Marchionne. He is credited with successfully turning the company around and making it profitable again. In this essay, we will discuss the late Sergio Marchionne and his innovative leadership style. We will also examine the current position of Chrysler in the market and how it may evolve in the future.

2. The late Sergio Marchionne and his turnaround of Chrysler

2.1 His innovative leadership style
Sergio Marchionne was an unconventional leader. He was known for his straightforward and no-nonsense approach. He was also known for being highly analytical and for taking risks. One of the risks he took was to invest in new technologies and to cross-train workers so that they could be more flexible and adaptable. This enabled Chrysler to be more agile and responsive to change. As a result of these innovative measures, Chrysler was able to turn around its fortunes and become profitable again.

2. 2 Cross-cutting measures

In addition to his innovative leadership style, Marchionne also implemented a number of cross-cutting measures. These included consolidating production, sharing platforms and parts between Chrysler and its Italian sister company Fiat, and developing new models that would appeal to a wider range of customers. These measures helped to reduce costs and improve efficiency. They also helped to make Chrysler more competitive in the market.

3. The current position of Chrysler in the market

3.1 The threat of substitutes

One of the main threats to Chrysler is the presence of substitutes in the market. These include other brands such as Ford, GM, Toyota, etc. which offer similar products at lower prices. This puts pressure on Chrysler to keep its prices competitive. In addition, there are also new entrants into the market such asTesla which offer electric vehicles which are seen as more environmentally friendly alternatives to traditional petrol/diesel cars. This poses a threat to Chrysler as customers may switch to these new brands if they perceive them to be better value for money or more environmentally friendly.

3. 2 Buyer demographics

Another issue facing Chrysler is that its customer base is aging. Baby boomers are beginning to retire and their children are not as interested in buying cars as they are in other products such as smartphones or laptops. This means that Chrysler needs to find new ways to attract younger customers if it is to remain successful in the future. One way it is doing this is by introducing new models such as the Pacifica which is a hybrid SUV/minivan. This is designed to appeal to families who are looking for a vehicle that is both practical and stylish.

4. How Chrysler’s position may evolve in the future

4.1 The 5 force industry model
One way of predicting how an industry may evolve is by using the five force industry model developed by Michael Porter (1979). This model looks at five different factors which can affect an industry: supplier power, buyer power, threat of new entrants, threat of substitute products, and rivalry among existing firms. Applying this model to the automobile industry, we can see that there are some potential challenges ahead for Chrysler:
-The supplier power is high as there are only a few suppliers of raw materials such as steel and aluminium. This gives them the ability to increase prices which would put pressure on Chrysler’s margins.
-The buyer power is also high as there are many alternative brands available. This gives buyers the ability to negotiate on price and choose the brand they perceive to be the best value for money.
-The threat of new entrants is low as it is a capital intensive industry with high barriers to entry. This makes it difficult for new brands to enter the market and compete with the established players.
-The threat of substitute products is high as there are many alternative transportation options available such as public transport, bikes, cars from other brands etc. This means that customers have a lot of choice and are not loyal to any one brand.
-The rivalry among existing firms is high as there is a lot of competition in the market. This puts pressure on all the firms to keep their prices competitive and to offer innovative products.

5. Conclusion

In conclusion, we can see that Chrysler is facing some challenges in the current market environment. However, under the leadership of Sergio Marchionne, it has been able to successfully turn around its fortunes and become profitable again. It is now in a strong position to compete in the future.


Chrysler was inspired to create the Speed Merchant because they wanted to offer a luxury car that was also high-performance.

Marchionne's leadership helped bring about the success of the Speed Merchant because he was able to get the team to work together and overcome any challenges that arose.

The challenges that had to be overcome in order to make the Speed Merchant a reality were mainly engineering and design challenges. Chrysler had to make sure that the car was able to meet all of the safety and performance standards that luxury car buyers expect.

Chrysler marketed the car by targeting high-end luxury car buyers and offering them a test drive. The reception for the Speed Merchant was very positive, with many people praising its performance and style.

Speed is such an important factor for luxury car buyers because it is one of the main ways that they can show off their wealth and status. Luxury cars are often seen as symbols of success, so being able to drive one quickly is a way to flaunt one's success.

The Speed Merchant compares favorably to other high-performance cars on the market, offering similar levels of performance at a lower price point.