Leach Out, Demel In at Fiat

Fiat Auto SpA signs former Volkswagen AG executive Herbert Demel to replace CEO Giancarlo Boschetti, who retires next year.

The first non-Italian to run Fiat, Demel got the nod after failed efforts to hire former Ford of Europe Inc. President Martin Leach.

Demel, 50, ran VW in Brazil before taking over Magna International Inc. operations in Austria a year ago.

Demel will lead the introduction of 20 new models over the next three years in an attempt to stem record losses.