Fiat Auto CEO Herbert Demel has abruptly departed the Turin-based automaker and Fiat Group CEO Sergio Marchionne is “assuming the role of CEO, Fiat Auto”, replacing Demel, the group said in a statement issued on Thursday night.

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Marchionne said in the statement: “Today’s decision to take direct responsibility of Fiat Auto is aimed at concentrating Fiat Group’s efforts to the recovery and re-launch of Fiat Auto.


“The agreement reached with General Motors saw Fiat’s rights confirmed and represents a fundamental step in Fiat Auto’s future.


“It is now possible to operate in total autonomy, without constraints but also without alibis. We must dedicate ourselves completely to the fundamentals of an automobile manufacturer: products, sales network and customer services.


“In Fiat Auto and Fiat SpA, a profound cultural transformation is under way following a management reorganisation that has delivered a more agile and efficient structure. A structure based on accountability and speed of decision-making processes. This is bringing and will continue to bring greater cost-reduction and operational benefits, contributing to a recovery in the competitivity [sic] of our assets.


“Of all Fiat Group sectors, Fiat Auto must be the principal focus of our attention. Other sectors are working well and intensively in order to achieve the objectives we have set for ourselves. The first results are already tangible. In fact, all sectors closed 2004 with better than expected results. Group break-even for 2004 is achievable.


“I wish to thank Herbert Demel for the work he has carried out with ability and dedication. I wish him well for the future.”


The Associated Press said on Friday that Marchionne had told the ANSA news agency: “I have made the decision to take on the post of CEO of the auto unit to speed up the company’s recovery.


“The auto (section) remains the group’s main problem.”


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