Ratan Tata likely for Fiat board

Agnelli family wants to induct Tata Motors chairman as an independent director.

The Agnelli family, the biggest shareholder in Italian car maker Fiat Spa, wants to induct Tata Motors Chairman Ratan Tata on Fiat's board as an independent director.

IFIL, an Agnelli company that owns 30 per cent of Fiat, said yesterday Tata's name had been proposed as one of the eight independent directors on the 15-member board for 2006-08.

An IFIL statement from Turin said, "Having taken note of the views expressed by the Fiat board of directors, the stockholder, IFIL "" given that the stockholders' meeting will be held this May 3 "" proposed to establish the number of members on the Fiat board of directors at 15, with the majority having the credentials for independence."

A Tata Motors spokesperson declined to comment. It also could not be established if Tata Motors would offer IFIL or Fiat a position on its board.

If Tata is co-opted on the Fiat board, he will join a small band of Indian CEOs on the boards of large multinational corporations.

Naina Lal Kidwai, CEO of HSBC in India, recently joined the Nestle board, while Gautam Thapar, vice-chairman and managing director of Ballarpur Industries Ltd, serves on the Bata board.

Tata Motors and Fiat had in January this year announced the signing of an agreement to share dealer networks, which will encompass the sale of Fiat branded cars through selected Tata outlets throughout India. Tata Motors will manage the marketing and distribution of Fiat cars in India.

"This deal is the first result of the joint activity started after the signing of a memorandum of understanding between Fiat and Tata Motors in September 2005," a Tata Motors release had said.