Marchionne to Relinquish Top Spot at Fiat Auto

Fiat SpA CEO Sergio Marchionne reportedly will relinquish his secondary role as CEO of Fiat Auto SpA at the end of the year, making room for a successor who will come from within the company’s ranks.

“I think I’ll do it in 2007, and I think there’s enough talent in the group,” Marchionne tells Reuters. “ I won’t hire anyone from outside the company.”

However, he still will follow the auto maker’s progress closely and remain CEO of parent Fiat.

The announcement by Marchionne, who took over the helm of ailing Fiat in June 2004 and assumed the lead of the core automotive unit in February 2005, came as the executive outlined the Italian auto maker’s goals through 2010.

Fiat Auto expects to achieve €32.5 billion ($41.6 billion) in sales by 2010, up from €19.5 billion ($25.0 billion) in 2005, while also increasing its market share in Western Europe from 8% in 2006 to 11% by the end of the decade.

Excluding commercial vehicles, the auto maker plans to launch 23 new models by 2010, Marchionne tells Reuters, adding he expects Fiat Auto’s global new-car registrations to increase from 2.1 million in 2006 to 3.5 million by 2010.