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| Fiat's corporate soap opera only exacerbates its most trying problem, many of its cars aren't competitive with similarly priced European alternatives. |
To make matters more confusing, at least to North Americans who usually only associate one CEO per company (hence the word Chief in Chief Executive Officer), current Fiat Group Director General Alessandro Barberis, has been promoted as the company's 3rd chief executive in six months.
Is this an interim appointment or is Barberis being groomed to take over from Fresco in July when he retires? Fiat sources wouldn't confirm, but more likely Fiat brass don't know. Analysts and investors feel that the Fresco and Barberis duo appear only to be a temporary band-aid to appease Fiat's creditors, leaving Fiat's future control and strategy up in the air.
"The whole arrangement is seen as a trial period until a shareholders meeting in April or May. Then the top management lineup and industrial plan will be evaluated," stated Insinger banks fund manager Patrizio Pazzaglia.
Quieting the waters at least gives Fiat a better climate to finalize the sale of customer-financing arm Fidis to currently appeased creditors. This is important as it will cut approximately $6 billion euro off its $32.8 billion gross debt. Of course, this action will only satisfy creditors so long, job cuts and output reduction will have to follow.