Luca Cordero di Montezemolo, chairman of Italian luxury sports car maker Ferrari, is quitting to be replaced by the boss of parent group Fiat after the two men clashed over strategy and the Formula One team’s poor results.

Fiat’s new chairman promised today he would push ahead with a restructuring plan that is pulling the vehicle building giant out of its worst financial crisis ever.

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

Luca Cordero di Montezemolo, the newly-elected chairman of Italy’s employer lobby, said Italian industry must invest to pull the country out of its economic slump, Corriere della Sera reported.