During the Fiat Auto Investor Presentation held at Lingotto last Thursday Group CEO Sergio Marchionne announced that he would be stepping down from his dual role as CEO of the Auto Division next year, a position he has personally held since last February. However, he will remain as Group CEO beyond the 2010 conclusion of the plan that was announced in detail at Lingotto.

"I think I will step down as (Fiat Auto) CEO some time in 2007," Marchionne told the investors at a conference which took place during the presentation at Lingotto in Turin on Thursday. "I think there is sufficient talent on this podium and in this organization. I wouldn't hire on the outside," he added.

Marchionne added the title of Fiat Auto CEO on 17th February 2005 when he sacked the then incumbent, Austrian Herbert Demel. "Losing 820 million euros a year, Fiat Auto was Fiat Group's biggest issue," Marchionne commented at the time. "I think it almost a natural that a group CEO takes direct charge of the biggest single problem his group is facing." The highly regarded Italian-Canadian had arrived at the Fiat Group from international certification agency SGS. He was at that point a Fiat Group board member. Marchionne then took up a hands-on role at the struggling Auto Division, engineering sweeping reforms and putting in place a highly ambitious turnaround plan.
 

The results since then have been dramatic as Fiat Auto turned its first trading profit, after a dreadful run of 17 quarters of losses, during the final quarter of 2005. This year Marchionne has stated that the Auto Division is set to make a 275 million euro trading profit as opposed to the 281 million euro loss it posted last year. The plans presented on Thursday also called for Fiat Auto to raise its annual production targets from 2 to 2.8 million vehicles a year by the end of 2010. Investors have put their faith in Fiat as the shareprice has climbed to new recent highs.

Marchionne stated on Thursday that the new Fiat Auto CEO will come from within the group, with the appointment likely to be decided between Fiat brand CEO Luca De Meo or Alfredo Altavilla the head of Fiat Auto Business Development, and the CEO of Fiat Powertrain Technologies and the Tofas joint venture. De Meo, 39, has reportedly built up a very strong working and personal relationship with Marchionne who has praised him highly on a number of occasions. Highly ambitious, De Meo was previously the CEO of the Lancia unit where he is credited with beginning the brand's effective turnaround at a time when he had scant resources available.

Altavilla meanwhile is regarded as the current favourite for the Auto Division CEO position. With his important roles within business development and at the Powertrain engine and transmission division he has been responsible for signing the swage of joint venture agreements that Fiat Auto has entered into with a string of other carmakers. He is also the CEO of Tofas, the Turkish joint venture company that manufacturers the Doblò LCV range and has developed the new Linea and 'Minicargo' projects. Altavilla last year won the important AutoBest "Man of the Year 2005" award for his "continuing and strong commitment to the development of Group activities in Poland, Turkey, Russia, Serbia and Montenegro." The jury of AutoBest is made up of renown automotive journalists drawn from the Eastern European and Balkan countries.

A third name reportedly being considered for the CEO's position is that of Cledorvino Bellini, the CEO of Fiat Automòveis, the autonomous Brazilian manufacturing arm of Fiat Auto. Under his guidance this division has consistently turned in strong profits a delivered good growth while the European operation slumped, and Brazil has rapidly developed its own importance within the Group, taking on more and more responsibility in global markets and the development of new products which will be destined for Europe.