Fiat Chrysler Automobiles has confirmed that Sergio Marchionne, the chairman and CEO of both FCA and Ferrari, will not return to work after suffering health complications following surgery.
The news was confirmed on Saturday evening, with Ferrari naming John Elkann as the company's new chairman. Former Philip Morris chairman Louis Camilleri is set to take over as Ferrari CEO in the coming days pending shareholder approval.
Marchionne, who was also Chairman and CEO of FCA, had been running Ferrari since taking over from Luca de Montezemolo in 2014.
"The Board of Directors of Ferrari NV learned with deep sadness during its meeting today that Chairman and CEO Sergio Marchionne will be unable to return to work," a Ferrari statement said. "The Board's thoughts are with Sergio Marchionne and his family and it is grateful for the extraordinary contribution he has made in recent years at the helm of Ferrari.
"The Board has named John Elkann as Chairman and will propose to Shareholders, at a meeting to be called in the coming days, that Louis C. Camilleri be named as CEO. "The Board has also given Louis C. Camilleri the necessary powers to ensure continuity of the company's operation."
Marchionne has overseen many of the changes that have returned Ferrari to success in recent years and was heavily involved in decisions on driver line-up and the team's overall direction. He was also a vocal and influential figure in F1 politics during his time as Ferrari's CEO.
Elkann, who is the grandson and chosen heir of former Fiat boss Gianni Agnelli, issued the following statement.
"With reference to the health of Sergio Marchionne, Fiat Chrysler Automobiles N.V. communicates with profound sorrow that during the course of this week unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours. As a consequence, Mr. Marchionne will be unable to return to work.
"The Board of Directors of FCA, meeting today, firstly expressed its closeness to Sergio Marchionne and his family and underlined the extraordinary contribution, both human and professional, that he has made to the Company in these years. The Board resolved to accelerate the CEO transition process that has been proceeding over the past months and named Mike Manley as CEO. The Board will therefore propose to the next Shareholder Meeting, to be called in the coming days, that he be elected to the Board and serve as an executive director of the Company.
"In the meantime, in order to provide for his full authority and operational continuity for the company, the Board has with immediate effect granted Mr. Manley all the powers of CEO. He will also assume responsibility for the NAFTA region. Mr. Manley and his management team will proceed with the implementation of the 2018 -- 2022 Business Plan as presented on 1 June this year, a plan that will further assure FCA's strong and independent future."