FIAT has denied reports that its chairman Paolo Fresco is to resign as unions geared up to protest against planned restructuring of the Italian industrial conglomerate's loss-making auto division.
The Italian daily Nazionale reported that Fresco was engaged in talks with the Agnelli family, which has a 30 per cent controlling interest in the group, to step down. It suggested Ferrari boss Luca Cordero di Montezemolo as Fresco's replacement.
However, Mr di Montezemolo said he was surprised by the news. "It's the first time I've heard this," he said.
Fresco took over Fiat's day-to-day management in June following the resignation of chief executive Paolo Cantarella.
Giovanni Agnelli, the 81-year-old patriarch who ran the company for 30 years until 1996, is himself back in the US for a new round of treatment for prostate cancer, having spent most of May undergoing treatment there.
The failing health of Agnelli, a senator and honorary life president of the group, has not helped Fiat to overcome its problems rooted in weak results and high debt.
Trade unions have mobilised for a round of strikes and protests aimed at blocking controversial restructuring plans meant to shed 8,100 Fiat jobs, most through a system of one-year lay-offs.
Italy's three biggest unions, CGIL, CISL and UIL, are preparing for a collective strike on Friday in the northern city of Turin, where the conglomerate has its headquarters.
Protests and work stoppages by Fiat employees have multiplied in recent weeks following the announcement of the restructuring plans in October.
Tens of thousands turned out November 8th in cities from Sicily to Turin to protest against Fiat's intended lay-offs.
Fiat has asked to be granted "crisis status" by the Italian government to reduce staffing levels by using a special long-term unemployment fund.
It has applied for support to lay off 5,551 workers for up to 12 months from a government crisis fund, which is financed by a levy on all Italian companies.
For union leaders and analysts, the move is further evidence that Fiat intends to sell the rest of its auto group responsible for Fiat, Alfa Romeo and Lancia cars to General Motors.
GM currently owns 20 per cent of Fiat Auto, with Fiat holding an option to sell the remaining 80 per cent stake to GM in 2004.
The Italian government may propose a counter-plan for Fiat that would reduce the technical lay-offs, notably sparing the closure of a factory near Palermo in Sicily.
To add to the gloom, new figures showed that Fiat's sales in western Europe were down 16.2 per cent in October. Fiat puts this down partly to a cut-back on sales of unprofitable lines. ... - AFP