CHRYSLEY CORPORATION
When someone mentions Chrysler, what comes to your mind: Dodge Ram Truck, Sam Elliott or the unstable financial investments made by management at Chrysler?
Several eras at Chrysler have had ups and downs, mostly influenced by ownership and troublesome economic times. The company has experienced the most trying times in the ladder of its existence. Encountering financial turbulence in the late 1970’s prompted a Congressional bail . This was all accomplished under Lee Iacocca, President and CEO of Chrysler in 1978. Iacocca stabled the near bankrupt company, allowing paying back the loan seven years earlier than expected. In 1987, the No. 4 automaker, American Motors, was bought by Chrysler and the consolidation was yet another financial crisis that lead to restructuring of the company . Chryslers 1990’s were a comeback with its Jeep lineup and vehicles like the powerful Dodge Viper. The company was acquired by Damler Bentz of Germany in 1998, and with inconsistent financial results the shareholders prompted Damler to seek a buyer in 2007. The company was sold to Cerberus Capital Management, an investment fund, which instilled Robert L. Nardelli as chief executive, formally CEO of Home Depot. Nardelli vowed a comeback for Chrysler being yet again an American owned company but suffered a deep sales slump and the recession took hold. In September 2008 sales were down 32.8 percent and prompted Chrysler to search for a merger partner, potentially with GM . Talks were halted while both companies sought funds from government to prevent closing the doors.
Sergio Marchionne was given the keys to Chrysler as CEO in 2008 in the mitts of another financial meltdown. Marchionne was proven successful in the industry by rescuing the Italian automaker Fiat and leading it to be the fastest growing company in the industry . His plan at Chrysler was to quickly combine the small car, small engine of Fiat with the predominantly large vehicle range of Chrysler.
As chief executive, Marchionne is effectively managing conflict at Fiat-Chrysler. He is straightforward and determined to turn around the Chrysler Company. In 2008, Chrysler was working its way toward collapse, with tens of thousands of jobs in jeopardy. However, Mr. Marchionne laid down the challenge that he can save the company and he provides a way to make it profitable again. He is truly a man who likes a good challenge.
Chrysler took a $6 billion, high-interest U.S. Treasury loan and promised to pay it all back by 2017. Marchionne used the $6 billion to modernize Chrysler plants with state of the art equipment to improve quality, upgraded 16 existing models in just 18 months, and began integrating Chrysler and Fiat's operations. While being the CEO of two automakers he simultaneously restructured Chrysler, overhauled production and revamped a failing vehicle line. Chrysler beat the government debtor-in-process loan payback deadline by six years.
It was obvious to Marchionne; something had gripped the leaders and subordinates at Chrysler because to them, it was really a question of existence. “There's nothing worse in life than to sit there and be the victim of a process that's outside your control” (Marchionne, 2012).
Successful leaders such as Sergio Marchionne can effectively use their power to influence, teach and motivate others through managing conflict, and at the same time, achieve outstanding results. It is essential that managers develop the skills to manage organizational conflict, politics, and negotiation to be effective and achieve goals that have been set forth. Organizational conflict will arise when the goals, interests, or values of different individuals or groups are incompatible. Such individuals or groups can impede one another’s attempts to achieve their goals. At Chrysler, organizational conflict existed within the divisions of its framework. Marchionne eagerly finds good people and does not hesitate to confide in middle and lower-ranked employees. He is a firm believer of mediocrity which seems to be an unaccepted concept and practice in the auto industry. For example, Marchionne reached deep into the company to find a well-respected and talented Peter L. Fong, head of sales for Mid-Atlantic States, and appointed him CEO of the Chrysler brand. In addition, Marchionne absorbs from conversations, qualities and values of workers that will help strengthen and change the focus for Chrysler’s reputation.
As the level of conflict increases, the need for organizational effectiveness is also going to increase. When a company has an optimum level of conflict, as Chrysler did, managers are likely to be open to, as well as encourage, a variety of new perspectives. As the level of conflict continues to increase, things escalate to a point where organizational performance suffers. Jones & George, 2011 quote, “Conflict is a force that needs to be managed rather than eliminated.” For example, demanding teamwork and to strengthen branding, Marchionne has turned Dodge, Jeep, and Chrysler into separate companies, each with its own CEO, to compete for marketing and development resources. To prevent brand chiefs undermining each other, they were also assigned corporate responsibilities. For example, the CEO of Chrysler brand is also in charge of sales for the whole company. The Dodge CEO has the responsibilities of marketing of all three brands. This cross directional management approach ensures that all CEO’s of each brand have interest in the success of all divisions.
Marchionne has taken many positive steps to make Chrysler a success. In early 2009, Marchionne began negotiating with the federal government over a controlled bankruptcy of Chrysler that would allow Fiat to take over the failing auto company. It was the last hope for Chrysler and its 54,000 employees. He earns respect from Chrysler employees and visa-versa. During his interview with 60 Minutes, Marchionne quotes, “I think the world of American workers. What happened here at Chrysler would have been impossible without the commitment that they've shown. Absolutely impossible. When I was looking at this deal back in 2009, I snuck into Jefferson, our plant that now makes the Grand Cherokee. And, I'll tell you if I had any reservations about doing this deal, it was after I saw the state of that plant. And the people that fixed that plant are the guys on the shop floor” (Marchionne, 2012). To change the management structure, he combed through the company and found 26 young leaders who would report directly to him. Marchionne moved his office to the first floor, side by side with all the engineers. The employees love having him so close.
The company has also made strides in reshaping its image. Chrysler's dramatic "Imported from Detroit Campaign" with Eminem was hugely successful. And this year's two-minute, $8 million Super Bowl ad with Clint Eastwood, extolling the resiliency of America and its automobile industry caused a major stir and briefly became part of the presidential campaign.
Marchionne splits his time between the Fiat headquarters in Turin, Italy, and Chrysler headquarters in Auburn Hills, Michigan, but he is fully engaged on both continents at all times. Besides being CEO of Chrysler Group and Fiat Automotive, which has nearly 200,000 employees at 166 plants worldwide, Marchionne is also chairperson of the Fiat Industrial Group, which makes heavy equipment, and SGS, the world's largest standards and instruments company based in Geneva. There are plenty of new products in the pipeline at Fiat Chrysler. A brand new Viper will debut next month. A high end Maserati SUV built in Detroit will debut next year along with a whole range of new models. With sales up 40 percent early this year, the company is projecting its best first quarter in four years. Nevertheless, Marchionne, who is right now obsessed with quality, is taking nothing for granted.
Last year, Chrysler turned a $183 million profit. There was even more profit to be accounted for, but the company decided to repay its $6 billion federal bailout. Much of the credit goes to U.S. taxpayers, and to Chrysler workers who accepted wage and benefit cuts. None of this could have happened without the herculean efforts of Marchionne.
One of man’s basic desires is to be his best, to maximize his personal potential. People invest their whole lives in pursuit of fulfilling this desire in what can be termed “The Quest for Success.” A successful, fulfilled individual is one who fulfills this duty. God is not all that concerned with what an individual chooses as a vocation, profession, or career. His desire and design for man is that no matter what area of interest he pursues, he will fulfill his first priority, his duty, of respecting God and keeping his commandments. To fulfill this duty and be successful, man must understand three basic concepts (Kehoe, 1995). Concept number one, God is the Author and Creator of all life. Man is merely a part of God’s plan and is nothing without God. In the book of Acts, we see this very truth. “God that made the world and all things therein, seeing that he is Lord of heaven and earth, dwelleth not in temples made with hands; Neither is worshipped with man’s hands, as though he needed anything, seeing he giveth to all life, and breath, and all things; For in him we live, and move, and have our being…”(Acts 17:24, 25, 28 King James Version). Concept number two, God made man to serve Him. “But God be thanked, that ye were servants of sin, but ye have obeyed from the heart that form of doctrine which was delivered you. But now being made free from sin, and become servants of God, ye have your fruit unto holiness, and the end everlasting life” (Romans 6:17 and 22). Lastly, concept number three, all life in the universe is for man to use and enjoy while serving God. “O Lord our Lord, how excellent is thy name in all the earth! who hast set thy glory above the heavens. When I consider thy heavens, the work of thy fingers, the moon and the stars, which thou hast ordained; What is man, that thou art mindful of him? And the son of man, that thou visitest him? For thou hast made him a little lower than the angels [ Elohim, God], and hast crowned him with glory and honour. Thou madest him to have dominion over the works of thy hands; thou hast put all things under his feet” (Psalms 8: 1, 3-6). Once man understands these concepts and his relationship with God, he can begin to fulfill the duty God has given him, and therefore be successful. A truly successful individual will give God the glory for his personal achievements and will use his God-given ability to serve God. The greatest man who ever fulfilled his quest for success was Jesus Christ. Christ was successful because he fulfilled his duty of respecting God and keeping His commandments. Does Sergio Marchionne effectively manage conflict at Fiat-Chrysler because he walks and lives biblical principles? He is straightforward and is very serious about what he is doing. In order to be as successful and dedicated as he is, chances are he turns to God frequently. We can expect similar results in our lives while experiencing various business endeavors as we live with the same heart Christ did, and desire always to give the glory to God.

References
Jones, G. R., & George, J. M. (2011). Contemporary management (7th ed.). New York: Irwin
McGraw Hill.
Dickens, M. (2012, January). Sergio Marchionne, CEO, Chrysler and Fiat. Retrieved from: https://www.allpar.com/corporate/bios/sergio.html
Marchionne, S. (2012, March 25). Sergio Marchionne: Resurrecting Chrysler. (S. Kroft,
Interviewer)
Maynard, M. (2009, April, 30). Chrysler: A short history. Retrieved from: http://www.nytimes.com/2009/05/01/business/01history.html?_r=1& Detroit Free Press (2012, July 30). Chrysler CEO Sergio Marchionne's e-mail about the company's performance. Retrieved from: http://www.freep.com/article/20120730/BUSINESS0103/120730051/Sergio-archionne-letter-to-employees Kehoe, R. L. (1995). The Quest for Success. The Way Magazine, 13-14.