Experts may have described Sergio Marchionne’s ambitious 2018 targets for his company Fiat Chrysler Automobiles as “fantasyland,” but he has one very expensive reason to ensure he sees them through, The Detroit News reports.
The Italian-Canadian businessman currently has $232 million invested in FCA, more than the CEOs of Nissan, General Motors and Ford have in their companies combined. That’s plenty incentive to reach his targets for FCA, which entail growing its Jeep and Ram brands and also expanding its Alfa Romeo and Maserati luxury brands in order convert the automaker’s $5.5 billion in debt to $4 billion in cash.
Analysts are doubtful in the plan and Wall Street has adjusted its stock ratings for the automaker to reflect this, but the ever-determined Marchionne remains diligent. His 14.6 million shares in Fiat may be a sign in how confident he is in his ability to turn the automaker around and eventually reach a merger with another auto-giant, and as in case he needs further incentive, he’ll get another 4.32 million FCA shares if he can meet the 2018 targets.
Marchionne also orchestrated Ferrari’s IPO on October 2015, which garnered him 1.46 million shares in the storied Italian supercar manufacturer. Analysts have also expressed their doubt in the sustainability of Ferrari stock, however a recent investment in the company from well-known Wall Street investor George Soros added some credibility to its long-term strength.