OOPS: Fiat CEO Search Restarted As ex Ford Leach Hiring Halted

TURIN, Sept 3, 2003; Reuters reported that Fiat widened its search for a new chief executive at its loss-making auto unit as doubts mounted whether former Ford Europe CEO Martin Leach would be allowed to take the job, industry sources said on Wednesday.

Leach quit Ford last month, reportedly to take over the controls of Fiat Auto from CEO Giancarlo Boschetti, who is due to retire in 2004.

But Leach's contract is understood to include a non-compete clause lasting from six to nine months. Some media have reported the lock-out could be as long as two years.

"They are waiting for Leach, but he still hasn't got the go-ahead from Ford," one industry source said.

"Leach is among the candidates and knows that the outcome depends only on his response," the source said.

Italian newspapers reported on Wednesday that the non-compete clause was complicating Leach's candidacy, with one daily saying the talks had been completely broken off.

Fiat and Ford declined to comment.

Leach, 46, was well respected at Ford despite leaving weeks after announcing a shock second-quarter loss. He is known for his passion for cars, which would stand him in good stead at Fiat as it focuses back on autos after years of diversification.

Fiat is launching three new mass-market models in the next couple of months in an attempt to reverse a sales slide that dragged Europe's once largest carmaker deep into the red.