Fiat to enter new era with new chief

• Source: Xinhua
• [13:50 April 22 2010]
• Comments

Italian automaker Fiat finally concluded its leadership transition as its board of directors on Wednesday approved the appointment of Agnelli family heir to the chairmanship.

John Elkann, grandson of former Fiat chairman Gianni Agnelli, is to take over from Luca Cordero di Montezemolo who has officially ceded the chairmanship of Fiat.

The 34-year-old will now chair the group's three main bodies - the Fiat proper, Fiat's parent company Exor investment, and Giovanni Agnelli e C. limited partnership.

John Elkann's first reaction to the approval of his appointment was: "I would have loved him (grandfather) to be here. I think of him at this time."

Montezemolo, however, will continue to sit on the Fiat board of directors and will remain in charge of Ferrari.

Agnelli selected Elkann to replace his cousin Giovanni Alberto Agnelli in the Fiat board when he was 22. His cousin died of cancer at the age of 33.

Along with John Elkann's takeover, the Fiat board meeting held at its headquarters in Turin got the group's much-awaited industrial plan for the 2010-2014 period.

Fiat CEO Sergio Marchionne outlined the five-year plan by announcing the spin-off of the group's auto division. Fiat will be divided within six months into two separate companies: Fiat and Fiat Industrial.

The Fiat Group Automobiles will remain in the original Fiat Spa group together with Fiat's components sector and the division of Powertrain which develops and produces engines and transmissions.

CNH and Iveco, together with the remaining part of Powertrain, will become Fiat Industrial, a new company which will be listed on the Milan stock exchange.

The new operation will be set up between May and the end of June for approval by the Fiat board by October.