Grandmothers should be eternal, that is, of course, what John Elkann thinks, the current president of Ferrari and Stellantis, who must pay a fine of 183 million euros and serve a full year of community service because of problems with the inheritance of his grandmother, Marella Carracciolo, widow of the historic Giovanni Agnelli, big names, eh.
It has not been a problem with his management at the head of the companies, but because of alleged tax fraud in the inheritance declaration, ay! The Italian prosecutor’s office has begun an investigation and tangled it with the Agnelli clan… The conclusion we draw here is that complicated times are coming for Elkann.
Where the sanction comes from
In 2019, Marella Caracciolo died, leaving behind an inheritance valued at several million euros to her three grandchildren, Lapo, Ginevra and John Elkann. Years earlier her husband, Giovanni Agnelli (2003), had already passed away, but that was not the problem.
The prosecutor’s office claims that the three grandchildren failed to declare about 1,000 million euros in assets and 248.5 million in income… Who would not have forgotten to declare that money… And there comes the economic punishment for the three siblings, 183 million euros and a year of community service each of them.
The battle with Margherita Agnelli
But this is not the only issue here, there’s another battle here, the long legal fight of Margherita Agnelli, daughter of Giovanni and mother of John Elkann, who for years has questioned the so-called “Geneva agreements” of 2004, signed after the death of the family patriarch. Margherita claims that those agreements unfairly favored Elkann and his siblings over the other five children that Giovanni had in his second marriage. Wow, it seems like a soap opera, right?
Almost two decades have passed but the dispute remains open, casting shadows over a multimillionaire estate that goes far beyond the surname… Not even Netflix.
What it means for Stellantis and Ferrari
Yep, we know it is a personal matter, but Elkann’s figure is too relevant in the market not to have repercussions in his business environment! He is the president of Stellantis and Ferrari (Ferrari!!) and his public image directly influences the confidence of the markets and above all, of the investors (who at the end of the day are the important ones).
The Agnelli dynasty
Synonymous of economic and political power in Italy, and founders of Fiat in 1899, they built an empire that marked the modernization of the Italian country in the 20th century. They have been important in banking, in the media and even in Italian politics, considered one of the most powerful families in Europe!
Known as “the Avvocato”, the legacy of Giovanni Agnelli still defines the family’s identity. His vision turned Fiat into a global player and cemented the fortune that his heirs now dispute!
How Stellantis arrives
It was born in 2021, and is the merger of Fiat Chrysler Automobiles (FCA) and PSA Peugeot-Citroën, and now acts as parent company of the great historic brands such as Peugeot, Opel, Alfa Romeo, Maserati, Dodge, Citroën and Fiat itself, operating in more than 130 countries.
Elkann, as president, reflects that historic path of the Agnelli dynasty that we talked about a little above, which is why analysts believe this will generate noise in the media, but will not change the course of either of the two companies!
A family that took Fiat to the top of the global industry… But 183 million and community service is what awaits these three grandchildren who do not seem to have known how to do everything so well, right? It might be poetic to see three billionaires doing community service, don’t you think?