FEBRUARY 26, 2003
Fresco to leave Fiat on Friday
Paolo Fresco, the boss of Fiat, is to quit on Friday, opening the way for Umberto Agnelli to take on the role that was previously held by his brother Gianni. Fresco has beenw ith Fiat since 1998 when he joined from General Electric. It is anticipated that the Agnellis will now reassert their dominance within the firm. The succession is important as Fiat decides what to do to fix the problems which have plagued its Fiat Auto subsidiary in recent months and could have a huge impact on Ferrari, which is part-owned by Fiat. Gianni Agnelli was always keen to hold on to Ferrari at all costs and stay in the automobile business but it remains to be seen if his brother will follow the same course of action. Umberto did say not long ago that Fiat might one day get out of the automobile business but he recently agreed to refinance the company with around $250m form one of the family holding companies.