Fiat's New Wheeler

Since it was established in 1899, Fiat, the second biggest automaker in Europe and the fifth biggest in the world, has had only two chairmen: Founder Giovanni Agnelli and, since 1945, Vittorio Valletta. Last week, at the age of 82, Valletta turned the wheel over to Gianni Agnelli, 45, grandson of Fiat's founder and a charter member of the international jet set.

The new Agnelli took over the company's chairmanship on the eve of a major new venture. Russia is expected to sign in a few days a "precontract" for the construction of a $600 million auto plant in Russia. Half of the plant will be purchased from Fiat. If the contract goes through, the plant will be opened in 1970 and will eventually turn out 500,000 modified Fiat 124s annually.

At home in Italy, where three out of every four cars on the road are Fiats, the company in 1965 produced 1,013,588 vehicles--its first million-unit year --and rang up sales of $1.5 billion. Production this year will rise 12-15%, to about 1,150,000 vehicles. Fiat also produces most of what it takes to put a car together and make it work, from ingots to machine tools to oil. Under the slogan "Fiat Land Sea Air," the company also makes railway and marine equipment, jet aircraft and engines.

The change of management from the elderly Valletta to the next-generation Agnelli might mean a difficult adjustment for some old hands at Fiat, but Agnelli says, "There's going to be no shock at all." Although he now acquires operative control of the firm, he already had financial control as head of the family holding company, I.F.I., which owns 25% of Fiat stock. Agnelli became a vice president of Fiat in 1945 and then a managing director in 1963, all the while swinging socially with an easy smile and a classic Roman profile. The skiing and boating pal of everyone from the Aga Khan to Jacqueline Kennedy, he is married to willowy Princess Marella Caracciolo. Italian Communists claim that he is the richest man in Europe, which Agnelli says is "complete nonsense." But he does admit: "I'm the man who pays the highest taxes in Italy."

This file is automatically generated by a robot program, so reader's discretion is required.