Jack Welch to Advise Fiat

The Daily Telegraph reported that Jack Welch, former chief executive of General Electric, has been recruited as an adviser to Fiat by an executive who was his right-hand man. He is already on the Fiat board as a non-executive, but Paolo Fresco, chairman, wants his former boss to provide more detailed advice on strategy and work on new key objectives.

The higher-profile role for America's best-known executive comes against the background of radical changes at Fiat amid renewed speculation that its move into energy is a prelude to an exit from motor vehicles. Fiat recently parted company with Roberto Testore, chief executive of the car business, after announcing plans to cut the work force by 6,000.

Fiat signaled a change in direction earlier this year as it moved into energy in partnership with EDF, the French state-controlled electricity generator, with a bid for Montedison.

Fresco was a GE career executive, rising to No. 2 in the executive hierarchy, before moving to Fiat in 1998 when he reached the GE retirement age of 65. Fiat has a more relaxed policy and allows executives to work up to 75.

Since surrendering the reins of power and writing a best-selling business book, Welch has turned himself into an "executive coach" and has been hired by more than half a dozen companies.