Alfa to become a part of Ferrari !
"TURIN, Italy - Fiat S.p.A. on Tuesday is expected to announce the resignation of its two co-CEOs, 69-year-old Paolo Fresco and 55-year-old Gabriele Galateri di Genola, as part of a sweeping reorganization that also will cancel General Motors" obligation to take over Fiat Auto anytime after 2004.
Under the reorganization plan expected to be outlined at a board meeting, the Alfa Romeo brand will be moved from Fiat Auto and put into a new luxury group alongside Ferrari and Maserati.
As a key part of the plan, GM will give up its right of first refusal on the sale or transfer of Fiat assets in exchange for Fiat Auto canceling a put option that requires GM to purchase the 80 percent of Fiat Auto it does not now own, beginning in 2004.
The deal will leave intact GM"s partnership with Fiat Auto in powertrain development and components purchasing, source said.
According to an Italian press report that could not be confirmed, Volkswagen AG will take a significant, but minority, stake in the new Alfa-Ferrari-Maserati business unit.
A Fiat S.p.A. spokesman late Monday afternoon denied that the resignations would take place, but the wording left much room for speculation. "(Resignations) are not part of the board"s agenda," he said.
According to sources, Gianluigi Gabetti, 79, will replace Fresco as chairman. Gabetti, from Turin, is a longtime associate of the Agnelli family. He is vice chairman of IFI and a board member of IFIL, the Agnellis" two financial holding companies.
The same sources say Galateri is expected to be replaced by Enrico Bondi, 68, CEO of the SAI insurance group. In his long management career, he has worked in chemicals (Montedison and SNIA), communications (Telecom Italia) and vehicle components (Gilardini)."
Automotive News Europe