MILAN -- Fiat has reorganized the structure of its parent company in another drive to improve the Italian industrial group's efficiency and make it more nimble in its decision making.
Since Chief Executive Sergio Marchionne arrived at the loss-making group in June, he has often criticised the complex and "inward-looking" structure in the bus-to-robotics group and was seen as holding back a turnaround.
In September, he orchestrated a management restructuring at core car unit Fiat Auto and had warned of job cuts in parent company Fiat S.p.A. as he moved on to simplify its structure. About 50 of 200 jobs there have now been cut.
Under the parent company reorganization, announced on Tuesday, 11 managers will report directly to Marchionne on issues from government relations to purchasing deals. The heads of each Fiat subsidiary also report to Marchionne.
The managers and unit CEOs will work together more openly than they did previously and avoid overlaps that had been rife.
Marchionne said the new structure would "encourage a profound change in mentality".
"A leaner organization fosters the responsibility of individuals and facilitates rapid decision making, thereby enhancing the competitiveness of the entire group," he said in a statement, adding it would open ways of cutting more costs.
The main managment changes see Domenico Bordone, CEO of Fiat's component unit Magneti Marelli, named to coordinate group purchasing deals while Ernesto Auci, formerly CEO of publishing arm Itedi, will take over institutional relations.