Fiat Chairman Montezemolo to Resign Post

Although Fiat has not named a replacement, speculation is John Elkann, the great-great grandson of Giovanni Agnelli, one of the founders of Fiat in 1899, will take over the top spot.

Fiat Spa Chairman Luca Cordero di Montezemolo will announce his retirement later today, the company confirms.

Although Fiat has not named a replacement, speculation is John Elkann, the great-great grandson of Giovanni Agnelli, one of the founders of Fiat in 1899, will take the post.

The decision to replace Montezemolo comes a day before Fiat Automobiles SpA CEO Sergio Marchionne is set to disclose the next 5-year business plan, which is expected to include spinning off Fiat’s auto operations from parent Fiat SpA, possibly by year’s end.

The spin-off is seen opening the door for additional alliances with other auto makers and providing the funding needed for international expansion.

A statement issued by Fiat says Montezemolo has decided this is a good time to step aside, because he believes he has “completed the assignment given to him by the core shareholder in May 2004.”

Montezemolo will remain a member of the Fiat board and stay on as chairman of Ferrari, Fiat says.

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