Umberto Agnelli, chairman of Fiat
TURIN --
Mr. Agnelli, 69, died late Thursday in a family villa on the outskirts of Turin less than three weeks after an announcement that he had lymphoma, a cancer of the lymph nodes.
Mr. Agnelli took charge of Fiat only last year after his more charismatic brother Gianni died of cancer in January 2003. He spent the next 16 months trying to tackle the worst financial crisis in the group's 105-year-history.
"This is a major loss for his family, his company, his city Turin and his country," said Prime Minister Silvio Berlusconi.
Mr. Agnelli's death marks a generational shift in the boardroom with his great-nephew John Elkann, grandson of Gianni, the most prominent family member within management now.
But at 27, Elkann is considered too young to take a top executive role at Italy's biggest private sector employer. Fiat has ventures around the world, from Brazil to China.
It was not known who would be named the new Fiat chairman.
Blue and yellow Fiat flags flew at half-staff at the group's historic Mirafiori plant in Turin.
"I don't know what kind of guarantee there will be now for our jobs," said Mario Bosco, a 16-year veteran of the factory. "I have a feeling it will be the banks who decide."
Creditor banks may convert a $3.65 billion loan into equity from 2005, possibly making them Fiat's top shareholders over the Agnellis who have 30 percent now.
Some analysts thought Mr. Agnelli's death might accelerate a shift away from being a family-run business empire.
"It's the end of an era, but I don't think this will have any impact on Fiat," Deputy Finance Minister Mario Baldassarri told Reuters. "Still, with the passing of Gianni and now Umberto, for the first time in over a century there is no longer a central point of reference."
Fiat shares closed up 2.3 percent at 5.80 euros compared with a flat European auto sector.
