FCA names new purchasing, planning executives in N.A. as merger looms

DETROIT — Fiat Chrysler Automobiles, in the midst of hammering out details of its planned merger with France's PSA Group, named a new head of purchasing and shifted the roles of two other key executives in North America.

Longtime auto supplier executive Martin Horneck was hired to lead FCA purchasing and supply chain management under Mark Stewart, COO of the company's North America region. Stewart announced the move internally Monday in a memo obtained by Automotive News.

He replaces Scott Thiele, 50, who was assigned to a portfolio planning role, reporting to Stewart. Thiele also will handle global long-range plan coordination, reporting to Mark Chernoby, chief technical compliance officer.

Richard Cox, 48, previously the head of portfolio planning, was assigned responsibility for global business development special projects, Stewart said in a separate memo.

"In this new role, Richard will be responsible for leading and coordinating various work streams associated with the integration planning for the upcoming merger with PSA," the memo said. "In addition, he will lead strategic projects with the group."

All three job changes are effective immediately, the memos said.

FCA and PSA announced their merger in December to create the world's fourth-largest automaker, but it will take more than a year to finalize the deal as the two companies figure out how to integrate their global operations and brands. PSA CEO Carlos Tavares said last month the two automakers have submitted 14 of 24 antitrust applications for various government approvals. The companies aim to close the deal by early 2021.

Horneck, 57, a native of Germany, joins FCA after several stints in the auto industry. His LinkedIn profile says he has been a C-level purchasing consultant for the last two years, based in Naples, Fla. He played a major role in helping cut costs at suppliers engaged in multibillion-dollar mergers, acquisitions and public stock offerings in recent years.

He was chief procurement and logistics officer for automotive paint supplier Axalta Coating Systems for nearly five years until February 2018, as the former DuPont unit was spun off with a public stock offering conducted by private equity firm Carlyle Group.

He held a similar role at suppliers ZF Friedrichshafen and TRW Automotive in suburban Detroit from 2008 to 2013. He also worked for transmission supplier Getrag and General Motors' powertrain unit.

Horneck faces numerous challenges in his new role. He takes over FCA purchasing as the global coronavirus crisis threatens parts production in several nations, including China and Italy.

FCA's supplier relations finished last among the six largest North American automakers last year in an annual study conducted by Plante Moran. The automaker's score in the benchmark North American Automotive OEM-Supplier Working Relations Index Study declined in 2019 for the sixth consecutive year.

"We are not at all satisfied with where we are," FCA said in a statement at the time. "This feedback will help us make the kind of transformational changes we've embarked on as a business."