Italian carmaker Fiat, still mourning the death of the last senior member of its founding Agnelli family, was plunged into turmoil on Sunday when its CEO suddenly quit moments after a new chairman was named.
The Agnellis, who control Fiat with a 30 percent stake, moved quickly after Umberto Agnelli died of cancer on Thursday, handing the top job at Italy's biggest industrial group to the head of its sportscar unit Ferrari, Luca di Montezemolo.
Chief executive Giuseppe Morchio, generally respected by investors for his plan to pull Fiat out of its worst crisis, said in a statement that he would leave the company immediately in protest at the board changes.
Sources in Fiat's hometown of Turin said Morchio and Montezemolo were both forceful characters who may have clashed. Agnelli had given Morchio a free rein to whip the family company back into shape when he was hired last year.
Fiat said its board would choose a new CEO today but the shock resignation, the day after Umberto Agnelli was buried, means a totally new team will now take over delicate discussions with creditor banks and partner General Motors.
Promoting Montezemolo, one of Italy's most prominent businessmen, to the chairman's seat from Ferrari was a sign that the Agnellis are still committed to the carmaker their ancestor founded 105 years ago but which has slumped into crisis in recent years.
Three younger Agnellis were named to the board. John Elkann, the 28-year-old heir of Fiat's flamboyant patriarch Gianni Agnelli who died last year, will be vice chairman.
Umberto's son Andrea Agnelli and another cousin will take board seats.
Morchio's four-year turnaround plan for Fiat, drawn up with Umberto Agnelli, is starting to bear fruit but a lot still remains to be done at the tractors-to-power generation group.
Morchio had replaced about half of Fiat's top managers with hand-picked outsiders who worked in a close-knit team to breathe new life into Fiat without being too tied to its past.
Alongside Agnelli, Morchio was a tough bargainer with GM, which owns 10 percent of Fiat Auto and is in a legal battle with Fiat about whether it can be forced to buy the rest.
GM had no immediate comment about Sunday's upheaval at Fiat.
Morchio was also a key point man with banks, which could convert a 3 billion-euro loan into about a quarter of Fiat's shares next year if the money is not repaid.
Montezemolo, 56, has the charisma and business sense to step into those shoes.
A charismatic manager with strong political connections, he is credited with pulling Ferrari out of the doldrums and turning it into a sporting and financial champion.
He was also chosen to head Italy's influential employers' body earlier this year.
"The man who made Ferrari into Fiat's best-known brand is a guarantee for the future of Italian carmaking," said Luigi Angeletti, the head of one of Italy's three main unions, UIL.
"Montezemolo's appointment shows the top shareholders are 100 percent committed to Fiat's recovery," he was quoted as telling ANSA news agency.
‘UPHOLDING PEACE’: Taiwan’s foreign minister thanked the US Congress for using a ‘creative and effective way’ to deter Chinese military aggression toward the nation The US House of Representatives on Monday passed the Taiwan Conflict Deterrence Act, aimed at deterring Chinese aggression toward Taiwan by threatening to publish information about Chinese Communist Party (CCP) officials’ “illicit” financial assets if Beijing were to attack. The act would also “restrict financial services for certain immediate family of such officials,” the text of the legislation says. The bill was introduced in January last year by US representatives French Hill and Brad Sherman. After remarks from several members, it passed unanimously. “If China chooses to attack the free people of Taiwan, [the bill] requires the Treasury secretary to publish the illicit
A senior US military official yesterday warned his Chinese counterpart against Beijing’s “dangerous” moves in the South China Sea during the first talks of their kind between the commanders. Washington and Beijing remain at odds on issues from trade to the status of Taiwan and China’s increasingly assertive approach in disputed maritime regions, but they have sought to re-establish regular military-to-military talks in a bid to prevent flashpoint disputes from spinning out of control. Samuel Paparo, commander of the US Indo-Pacific Command, and Wu Yanan (吳亞男), head of the People’s Liberation Army (PLA) Southern Theater Command, talked via videoconference. Paparo “underscored the importance
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
CHINA POLICY: At the seventh US-EU Dialogue on China, the two sides issued strong support for Taiwan and condemned China’s actions in the South China Sea The US and EU issued a joint statement on Wednesday supporting Taiwan’s international participation, notably omitting the “one China” policy in a departure from previous similar statements, following high-level talks on China and the Indo-Pacific region. The statement also urged China to show restraint in the Taiwan Strait. US Deputy Secretary of State Kurt Campbell and European External Action Service Secretary-General Stefano Sannino cochaired the seventh US-EU Dialogue on China and the sixth US-EU Indo-Pacific Consultations from Monday to Tuesday. Since the Indo-Pacific consultations were launched in 2021, references to the “one China” policy have appeared in every statement apart from the
RSS