Management turmoil hits Fiat shares

Fiat shares were down 3.3% in early trading at the Milan stock exchange after a management shakeup at the Turin-based vehicle maker.

Fiat chief executive officer Giuseppe Morchio handed in his resignation yesterday, shortly after the Turin-based vehicle conglomerate announced it had picked Ferrari chief Luca Cordero di Montezemolo as its new chairman.

The shake-up came three days after the death of Umberto Agnelli, the last of the company’s old guard.

The shares had opened at 2.9 down on pre-trading today in Milan.

A motor analyst at Kepler Equities in Milan, Matteo Bonizzoni, described Morchio’s resignation as “a big surprise” but said Montezemolo is “credible.”