Marchionne style may boost Chrysler

DETROIT (Reuters) - When Sergio Marchionne unveils his vision for Chrysler's revival on Wednesday, he must more than anything win customer confidence -- and auto industry players think he has the charisma to do that.

Marchionne, who now heads both Chrysler and Fiat SpA, which he drove to success, persuaded the Obama administration earlier this year to give the Italian automaker 20 percent of the bailed-out company and put him in charge.

Chrysler's sales have slumped this year. But on Tuesday it reported October sales up 6 percent from September and said it had cut inventory 60 percent at the end of October from a year ago.

But to really drive the business forward, it needs new products in its brands -- which include Dodge and Jeep -- to revive customer interest and restore confidence the company will still be there if a car needs fixing or they want to trade in.

The new plans will focus on the product slate but it will be Marchionne under the spotlight for workers in battered Detroit, which has fallen from the global Motor City to a landscape of skeletal skyscrapers and foreclosed homes.

Some are making hopeful comparisons with Lee Iacocca, who turned around Chrysler in the 1980s and appeared in a series of commercials for the company's vehicles using the ad campaign "The Pride is Back."

Marchionne enjoys the limelight and has some star power, recognized by Italians worldwide who have been known to stop him in the street and ask him to pose for photos.

His open managerial style and deep knowledge of the industry have already affected the head of the biggest U.S. auto union, Ron Gettelfinger of the United Auto Workers.

"I am convinced Sergio Marchionne is going to be very good for Chrysler," he told the Reuters Autos Summit on Tuesday.

Not only does Marchionne have a "clear vision" for the company, but he is also "extremely respectful of the union ... extremely open," Gettelfinger said.

Bill Diehl, chief executive of advisory firm BBK, said Marchionne "has a reputation for getting things done."

The challenge, he added, "is to demonstrate to consumers his plan is viable."

Marchionne, who favors baggy trousers and a sweater over suits, is known for his confidence in answering journalists' questions and his habit of holding impromptu press briefings.

Gettelfinger, in suit and tie like most of the summit's guests, was impressed by Marchionne's focus on people.

"I know he went out to the facilities and one of the things that he did was walk into the rest room to inspect it. Now you don't normally see that happen," he said.

"But he truly believes in the power of the people, the value they add to the process," said Gettelfinger, who began his career working in a Ford auto plant.

Henrik Fisker, chief executive of Fisker Automotive, likened Marchionne's role as Chrysler chief executive to that of a master chef tasting what his team has prepared and working out if the price is right for the diners.

"He has a tough job. His job is probably tougher than mine," said Fisker, who is starting up as a builder of plug-in hybrids with the first model due next year.

Jerry York, who once worked as chief finance officer at Chrysler and as a director of General Motors but is best known as an adviser to billionaire investor Kirk Kerkorian, told the summit on Monday that Fiat's past lack of success could pose another challenge -- or potential triumph -- for Marchionne.

"As we all know, Fiat for historic reasons, does not have a great reputation in this country," he said.

(Reporting by Jo Winterbottom; Editing by Peter Bohan and Phil Berlowitz)