New Fiat president appointed

TURIN, Italy, May 30 (UPI) -- In a surprise move Sunday Luca Cordero di Montezemolo was appointed president of the Italian car maker Fiat to succeed Umberto Agnelli, who died Friday.

Montezemolo, a high-profile Italian business executive, currently heads the Ferrari-Maserati company. John Elkann, 28-year-old grandson of Giovanni Agnellli, was appointed vice-president of Fiat, Italy's largest industrial group.

Giovanni (Gianni) Agnelli, Umberto's older brother, died 16 months ago.

Following the announcement, Fiat's chief executive officer of 15 months, Giuseppe Morchio, resigned citing the "changed conditions following the board's decision."

Montezemolo is not a member of the founding family of Fiat, but he's the next best thing. For over 30 years he has been close to the Agnellis, much of it at Fiat.

Montezemolo takes over at a time when a major restructuring of Fiat is under way. The company is still losing money but most investors believe it can break even by the end of the year.