| The largest automobile concern in Italy, Fiat SpA, has chosen its leader. Two days after the death of the head of the company, Umberto Agnelli, the board of directors decided to hand over the reins to the chairman of the board of directors of the legendary Ferrari SpA, Luca Cordero di Montezemolo. The concern pins great hopes on his arrival. After all, it was Mr. Montezemolo, who headed Ferrari 30 years ago, who made it famous thanks to its active participation in Formula 1 racing.
In Italy, Montezemolo is known not only as the head of Ferrari, but also as a public figure. He was involved in politics, published newspapers, and was even one of the participants in organizing the World Cup in 1990. Montezemolo was born in Bologna into an aristocratic family on August 31, 1947. He studied at the Faculty of Law in Rome and received a diploma in international trade law. Then he graduated from Columbia University in the USA. He was fond of car racing and tried himself as a pilot.
Despite the fame and popularity of Mr. Montezemolo, the choice was not easy for the board of directors of the Turin concern. Some of its members were categorically against this decision. Fiat chief executive Giuseppe Morchio left the company in protest. Two days earlier, it was he who was predicted by many media outlets to take the place of the new head, and there was every reason for this. Having taken his chair a year ago, Morchio quickly got into the swing of things and during this time significantly improved the company's position. In the first quarter of 2004 alone, he managed to reduce Fiat's losses from 681 million to 194 million. Morchio announced his resignation immediately after the vote. Today the board of directors will meet specifically to discuss his surrender. “My departure is due to changed conditions. It was the result of a decision made by the board of directors. It’s a shame that I will no longer be able to take part in the restructuring program, which contributed to the company’s recovery from the crisis and allowed us to obtain the first positive results,” he said in an interview with Ansa on Sunday.
The new head faces a difficult task. The Fiat concern is going through hard times. Sales volume has fallen, its former glory has been lost, and we have to actively fight for the market. In addition, there is a real threat of a takeover by Fiat. If the Agnelli family now owns a total of 30% of the company's shares, then in a year the situation could change dramatically. Fiat's creditors (mainly large national and foreign banks) will be able to exchange the company's $3 billion debt for shares of the concern. As a result, these banks will become the largest shareholders of the concern. The American auto giant General Motors is also laying claim to Fiat, having bought a 20% stake in the Italian concern in 1996 in exchange for 6% of its own shares. Denis UVAROV
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