Former Fiat Chrysler CEO Sergio Marchionne has died at the age of 66, one of the auto industry's most tenacious and respected chiefs.

A company shareholder confirmed news reports of his death on Wednesday, citing complications from recent surgery.

Marchionne fell gravely ill after a shoulder operation in a Zurich hospital.

He was hastily replaced as chief executive last weekend after Fiat Chrysler said his condition had worsened.

Marchionne rescued Fiat and Chrysler from bankruptcy after taking the helm of the Italian carmaker in 2004.

In 14 years he multiplied Fiat's value 11 times and was due to step down in April next year - leaving the company as the world seventh largest carmaker.

In a statement the chairman said quote, "The best way to honor his memory is to build on the legacy he left us." The new CEO is British former Jeep division head Mike Manley, who plans to execute a new mid-term strategy that Marchionne had outlined in June.