The Battle over the Future of Fiat
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| Umberto Agnelli (pictured) may not run the company directly, but along with brother Giovanni, holds a political trump card in Italian Prime Minister Silvio Berlusconi. |
The battle is on between Italy's banks regarding Fiat Auto's future. Heated discussions about who is going to replace ex co-CEO Gabriele Galateri di Genola, who resigned Tuesday, were going to take place in a meeting held today, but it has now been delayed. It's now to be held tomorrow.
Who's taking what side? A triumvirate including Umberto Agnelli, head of the family holdings that control Fiat, Italian merchant bank Mediobanca and the Italian Prime Minister Silvio Berlusconi is pitting against a consortium that brings together Fiat Chairman Paolo Fresco, a number of Fiat's creditor banks and the Bank of Italy.
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| Fiat Chairman Paolo Fresco is openly unwilling to step aside from Fiat's top job. |
Fresco and the creditors, who laid out 3 billion euros in loans to Fiat in July, have managed to impede the completion of Agnelli and Mediobanca's plan to remove both Fresco and Galateri from leadership positions within the company.
Galateri, who won the top job from Paolo Cantarella only 6 months ago, was stated as having had enough of recent pressures. But Fresco is digging in his heals to remain at the helm. "I won't resign. They have to fire me," he was reported to have said after the meeting. He also has the confidence of the majority of Fiat's board of directors.