In an effort to slow the crash, Toyota Motor Corp. is undertaking a massive overhaul and management reorganization next month when Akio Toyoda takes over as president. Toyoda, the grandson of Toyota's founder, will be officially appointed on June 23 at the annual shareholder's meeting. With the new president in place, the Financial Times is reporting that the company will replace 40% of its senior managers and bring back Yoshimi Inaba, a former senior executive, to lead U.S. operations.
Fiat is increasing its stake in Ferrari, buying back the shares it sold to Italian investment bank Mediobanca during Fiat's financial troubles in 2002. The Turin-based auto conglomerate is the undisputed Don of the Italian car business, controlling Ferrari, Maserati, Alfa Romeo, Lancia, Iveco and Magneti Marelli (to name a few), and will exercise its option to buy back the 29% currently held by Mediobanca by the end of September.