From Tire Review
With the sudden departure of its tire unit chief, Pirelli SpA found itself having to revamp its executive leadership and organizational structure.
Francesco Gori, Pirelli’s longtime tire unit managing director and CEO and corporate COO, resigned from the company, reportedly over serious disagreements over the direction of the company and its tire business. Well-known and well-respected throughout the global tire industry, Gori was a 33-year veteran of Pirelli, having joined the company in 1978.
A statement from Pirelli confirming the news stated the fact that Gori is subject to a three-year non-competition clause and that “the company expresses its appreciation to Francesco Gori for the significant contribution to the Group’s results and development made in 33 years of service.” No details were given as to exactly when this decision takes effect.
Following official confirmation of Gori’s resignation, Pirelli made significant revisions to organizational structure. According to the company, Pirelli has decided to reinforce its technological and commercial organization, apparently completing a re-definition, which it claimed began in October 2011.
Under the new model, the tiremaker has replaced its “executive office” with two new roles reporting directly to chairman and CEO Marco Tronchetti Provera. Those new posts include a chief technical officer (CTO) and chief commercial officer (CCO), positions to be held by Maurizio Boiocchi and Andrea Pirondini, respectively.
Tire product, processes, quality, OE and team motorsport functions will report directly to Boiocchi as CTO. In particular, the CTO will directly coordinate the OE function so as to optimize relationships with carmakers and increase the efficiency of processes linked to experimentation and product development, Pirelli said.
Marketing, sales and retail functions will report directly to Pirondini as CCO, with the aim of strengthening commercial operations and enhancing coordination between geographic areas.
Tronchetti Provera, meanwhile, will have the staff, planning and controlling, operations and supply chain functions reporting directly to him. In addition, he will have direct reports from the motorcycle, industrial (truck, agricultural, steel cord), products and services for the environment and P Zero Moda segments.
Commenting on Gori’s resignation, financial analysts at Morgan Stanley wrote: “We think this increases execution risks at Pirelli, given the extremely high internal and external profile, industry knowledge and track record.” They also remarked that the fact Pirelli did not clarify the reasons for his departure and exactly who will take his place is “puzzling.”
The Morgan Stanley analysts also stated that Pirelli shares did not sell off when the news was officially announced to investors (May 10) indicating stability despite the personnel change.
One posited explanation for Gori’s departure is that Tronchetti Provera has “regained personal focus and commitment to Pirelli Tire” since 2009. Morgan Stanley surmised that this change was likely to have already been in plans since November 2011, when Pirelli announced its latest Industrial Plan “and leaves little doubt that Gori’s departure is no news for Pirelli people.”
Gori’s first years with the tiremaker were spent in sales departments both in the Italian domestic and export markets. He was then appointed product manager in 1982 in the motorcycle tire division, and later country manager for Northern European markets in 1986, covering then also Middle East and Far East export markets from 1988.
In 1990, he was appointed business manager for car tires; in 1991 to tire sector director of product planning and strategy; in 1993 to tire marketing director; in 1997 to director of business development; and in 1999, he was promoted to sales and marketing director.
In 2001, Gori was appointed general manager of Pirelli tire sector. Effective July 2006, he became CEO of Pirelli Tyre.
In October 2006, Gori was elected president of the European Tyre & Rubber Manufacturers Association, and was re-elected to a three-year term in 2008. (From Tyres & Accessories)
From Tire Review