Shares in Fiat Chrysler fell four percent on Monday after the CEO announced his resignation due to serious health issues.
The sudden shift in CEO at Italian-American carmaker, which is also attempting to deal with the global trade dispute caused shares to plunge as investors worried.
“It is with great sadness that I have to tell you that our CEO Sergio Marchionne, who recently underwent surgery, unfortunately, experienced complications that have worsened in recent hours and will prevent his return to FCA,” said John Elkann, the group’s chairman in a letter to employees on Saturday.
Mike Manley will replace Marchionne as the chief executive. He has run the group’s Jeep SUV and Ram truck brands, which are two of the company’s most profitable units.
Manley has been at Fiat Chrysler since 2000 and has kept a relatively low profile compared to his boss.
Philippe Houchois, an analyst at Jeffries Financial Services, said in a note: “Although Mr. Manley’s public profile has been relatively low and limited to operational matters, he was heavily involved in setting the 2019-22 strategic plan.”
“We expect continuity,” he added.
The new CEO has less experience with finance and manufacturing say analysts and dealers, but he has the benefit of Marchionne’s recently announced strategic plan.
Manley has not yet made any public statements since being named CEO but will host an earnings call Wednesday.
Shares in the Fiat Chrysler (BIT: FCA) are currently trading down 2.80 percent at 1596 (1356GMT).