ITALY: HEAD OF AUTO GIANT FIAT GIANNI AGNELLI RETIRES

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• published: 21 Jul 2015
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Italian/Eng/Nat Gianni Agnelli, head of Italian auto giant Fiat, has officially retired after three decades at the helm of his family's car business. The 74-year-old is handing over the reins to Cesare Romiti, only the second Agnelli family outsider to head the company in its 97-year history. But while Agnelli may no longer be the official chairman, his influence will remain as strong as ever. At Fiat factories around Italy, workers probably will notice little if no change, but the retirement of Agnelli on Wednesday marks the end of an era. His departure has symbolic value in a country where a small group of families dominate the business world and where business titans are high-profile figures in politics and society. While Agnelli stepped aside long ago from day-to-day operations, he continued to wield strong influence on decision-making. Fiat's financial health plays an important role is the Italian economy. The car company is the country's largest private company - it accounts for nearly seven per cent of Italy's entire output and nearly a quarter of the equity on the Milan stock market. Agnelli, during his decades at the helm of Fiat, is believed to have amassed a personal fortune of over three billion (b) U-S dollars. But time has been running out for Agnelli - Fiat has a mandatory retirement age of 75, and his 75th birthday is next month. However his replacement Romiti will soon run up against the same problem soon - he turns 73 in June. Few observers believe Agnelli will bow out entirely of the Italian political and corporate scene - most expect him to pursue his role as a major behind the scene player in Italian politics. The magnate counts Prime Ministers, political and business leaders among his acquaintances. SOUNDBITE: (Italian) "We industrialists have always regarded Fiat with great admiration. I have recounted on occasion to Attorney Agnelli that instead of the Madonna, I have the photo of Attorney Agnelli on my desk. Therefore it is very easy for me to give him these compliments and I have always thought, as many of my generation, that if things were going well for Fiat, they were going well for all of our economy." SUPERCAPTION: Silvio Berlusconi, Former Prime Minister But some observers believe his retirement can only benefit Italy. Alan Friedman wrote a biography on Agnelli and is concerned about the power he has wielded over the decades. SOUNDBITE: (English) "Gianni Agnelli is a figure in Italy who doesn't really exist in any other advanced industrial democracy. He controls two of the three biggest newspapers, 25 per cent of the entire Italian stock exchange, banks, insurance companies, 50 per cent of the car market. He is an olygopolist. He's an uncrowned king. I don't think that's healthy for the Italian economy to have a concentration of power. It isn't healthy to have that kind of concentration of power in the hands of one man. SUPERCAPTION: Alan Friedman, journalist and author of Agnelli biography Most of Italy's prominent political figures, even those clearly not Agnelli's friends, have paid homage to the dignified and powerful Agnelli. The appointment of Agnelli's successor is controversial. Stepping into the hot seat is his deputy Cesare Romiti. Prosecutors in Milan have requested that he be indicted on corruption charges. Romiti has denied the charges, and is expected to appoint Agnelli's 31-year-old nephew and heir apparent Giovanni Alberto Agnelli in two years time. Agnelli Junior is currently running Fiat's Piaggio motorscooter business. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/34ab4423583bd99efad847cb73b0eeb8 Find out more about AP Archive: http://www.aparchive.com/HowWeWork