Fiat has denied a newspaper report on Tuesday that Fiat Auto CEO Herbert Demel was set to be replaced by Maserati boss Martin Leach after only a year at the helm.
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According to Reuters, the Finanza & Mercati newspaper said Demel’s departure was imminent as Fiat CEO Sergio Marchionne sought to speed up a turn-around at the auto unit.
“This is pure, baseless speculation,” Fiat said in a statement cited by the news agency. “No change is being considered for the management of Fiat Auto.”
Reuters noted that, in the third quarter, Fiat’s core car unit fell short of forecasts and reported a €270 million loss, against a loss of €314 million the previous year.
Marchionne reportedly said Fiat Auto, which dragged the industrial group to a record loss in 2002, “remained a concern”.
Reuters added that former Ford Europe head Leach had been expected to take over as chief executive of Fiat Auto last year but Ford blocked his move under a clause in his contract that prevented him moving to another car maker – that clause has since been annulled.
