MILAN -- PSA Peugeot's takeover of Fiat Chrysler to form the world's fourth-largest carmaker has had its first executive casualty, with former Fiat Chrysler Chief Executive Officer Mike Manley stepping down from his role of head of the Americas.
Stellantis announced Tuesday that Manley, 57, was leaving to become CEO of AutoNation, the largest dealership network in the U.S., starting Nov. 1. Manley will not be replaced. North America Chief Operating Officer Mark Stewart and Antonio Filosa, COO of Latin America, will report directly to Stellantis CEO Carlos Tavares.
Manley will retain ties with Stellantis as a board member of the Stellantis Foundation.
"The time feels right for me to open a new chapter," Manley said in a statement. "Working with Carlos to create this extraordinary company, with the constant support of our shareholders, has been a huge privilege both professionally and personally. I am very honored to have been asked to join the Stellantis Foundation Board."
Manley was named CEO of Fiat Chrysler in July 2018, coinciding with the illness and sudden death of longtime CEO Sergio Marchionne. When Stellantis was formed, Tavares, who was Peugeot's chief executive, took over as CEO of the combined carmaker.
During Manley's tenure, Fiat Chrysler continued the growth and rebound that Marchionne had started. Manley was in charge in 2019 when the company announced its $4.5 billion investment in southeast Michigan that led to the building of the first new vehicle assembly plant in Detroit -- the former Mack engine complex -- in 30 years.
Fiat Chrysler's position, however, as an independent company was always considered questionable because of an evolving industry that appeared to favor consolidation, something that Marchionne had long preached and pursued. Speculation about potential auto partners was a regular feature during Manley's tenure as it had been with Marchionne's. The merger with Peugeot maker PSA Group earlier this year was less a surprise than resolution of a long-held goal.
Manley was credited with the turnaround of the Jeep subsidiary, which was a mainstay of Fiat Chrysler profits, and also was the longtime head of its Asia operations. Manley is well-respected in the analyst community, lauded for his strong credentials to run a global automaker both in terms of technological and strategic transitions.
Manley is taking over a dealership group that posted more than $20 billion in sales and $382 million in net income last year. He replaces Mike Jackson, an industry icon who has been with AutoNation for 22 years. Jackson retired in 2018, but was called out of retirement when his replacement left the company.
AutoNation, based in Florida, is the largest chain of car and truck dealerships in the U.S., with more than 300 locations nationwide. The company says it has sold more than 13 million vehicles.
Guidehouse Research Principal Analyst Sam Abuelsamid said it's likely that Manley began looking for another chief executive job after getting passed over as CEO of Stellantis by Tavares.
At present, there aren't any CEO jobs available at major automakers, so Manley took the job running the largest retailer in the country, he said.
Taking the top job at AutoNation makes sense for Manley, who had to handle dealers and the retail end of the auto business when he ran Fiat Chrysler's Jeep brand for years.
Abuelsamid said the job will be challenging for Manley because the ground is shifting dramatically under the dealerships as sales shift more to online, automakers want to sell more through orders, and the world is moving away from combustion engines to electric vehicles.
Also, upstart electric vehicle makers are opening their own stores or selling directly to customers, and with fewer moving parts, electric vehicles could mean lower revenues from repairs and maintenance, he said.
"It's not going to be an easy job over the next five to 10 years," Abuelsamid said. "The role of dealers is going to change and shift dramatically as we get more into electrification," he said.
Tavares said in a statement that he was sorry to see Manley go.
"It's been my privilege to know Mike first as a competitor, then as a partner and colleague in the creation of Stellantis, but most importantly, always as a friend," the Stellantis CEO said. "From the very earliest days of our discussions, we shared a truly common vision, belief and commitment and it's on these solid foundations, built over the past several years, that Stellantis has delivered its impressive early results."
AutoNation shares rose 2% in New York trading early Tuesday. Stellantis shares closed up 0.6%.
Information for this article was contributed by Jamie L. LaReau and Eric D. Lawrence of the Detroit Free Press (TNS).
