Fiat chairman Luca Cordero di Montezemolo is stepping down after seven years piloting the Italian industrial giant through tough times, media reports said yesterday.

Mr Montezemolo, 62, is to be succeeded by vice chairman John Elkann and will remain on the supervisory board and at the head of Ferrari, national daily La Repubblica reported on its website.

"John Elkann will be the next chairman of Fiat," La Repubblica said.

Under Mr Montezemolo's stewardship, Fiat autos weathered the economic crisis and became a key shareholder with 20 per cent in US group Chrysler.

The news agency ANSA said that Mr Montezemolo had told people close to him at Fiat that he was "relaxed, content and relieved" about the decision. A group spokesman declined to comment to AFP.

Mr Elkann, grandson of historical Fiat patron Gianni Agnelli, is currently the head of Exor, the Luxembourg-based holding company that controls Fiat.

The son of Mr Agnelli's daughter Margherita and writer Alain Elkann, 34-year-old John Elkann will be the youngest chairman in the group's history.

La Repubblica also said that in 20 days, Mr Elkann will also be named head of Gianni Agnelli & C. Sapaz, the master holding company of the Agnelli family.

Markets reacted positively, with Fiat stock up 7.6 per cent by 11.45 GMT.

Fiat, best known for its cars, owns many historical Italian brands such as Ferrari, Lancia, Alfa Romeo and Maserati.

Mr Montezemolo, a renowned figure among Italy's economic elite, is the president and managing director of Ferrari, and headed Italy's powerful employers' lobby Confindustria from 2004 to 2008.

Together with chief executive Sergio Marchionne, Mr Montezemolo helped rescue Fiat from a series of crises and put it on a sound footing before the global economic crisis struck.

Fiat then stepped in to save the then bankrupt US Chrysler group last year and Mr Marchionne is now also the chief executive of Chrysler.

Fiat offered its small-car and clean-car technology to Chrysler in return for a stake in the group and access to its US dealer network, without laying out cash.

Fiat will present its much-awaited industrial plan for the 2010-2014 period today along with financial results for the first three months of 2010.

The company is expected to present new car models and financial objectives during a six-hour presentation in Turin.

Fiat lost €283 million in the last quarter of 2009 and €848 million throughout the year.