Fiat chief pledges strong recovery
Fiat’s new chairman promised today he would push ahead with a restructuring plan that is pulling the vehicle building giant out of its worst financial crisis ever.
The day after his appointment to Fiat’s top position, Luca Cordero di Montezemolo said management at the Turin-based carmaker was still strong, despite the sudden resignation of the company’s chief executive.
CEO Giuseppe Morchio handed in his resignation yesterday, shortly after the group announced it had picked Montezemolo, the Ferrari chief, as its new chairman.
The shakeup came three days after the death of Umberto Agnelli, the last of the company’s old guard.
“I will try and continue his work,” Montezemolo said, referring to Agnelli.
“We have to push ahead with the restructuring plan. The team is there and is strong,” said Montezemolo, speaking on the sidelines of a Bank of Italy meeting in Rome.
At the Milan stock exchange, Fiat shares opened at 2.9 down on pre-trading, and in early trading they had fallen by 3.3%. Later they were down about 2%.
The market reaction was being watched carefully as Morchio was widely respected by investors for helping devising the restructuring plan, which has helped Fiat narrow its losses significantly in the first quarter of this year.
The appointments of Montezemolo, a close family ally, and of two young Agnellis to prominent positions also indicated the family was keen on maintaining its tight grip over the company.
“The Agnellis are not done,” Maria Sole Agnelli, Umberto’s sister and a senior member of the family, told La Republica in an interview published today. “Believe me, we never thought of giving up our role and our responsibilities.”
