5 January 2011
A “demerger” of Fiat automotive and industrial businesses, approved a few months ago and finalized in December 2010, became effective on January 1, 2011. The new companies—Fiat SpA and Fiat Industrial—began trading separately on the Milan stock exchange this week.
Fiat Industrial includes Iveco, the truck and engine maker; CNH Global, the agricultural and construction equipment manufacturer; and FPT Industrial, the industrial and marine part of Fiat Powertrain Technologies.
Sergio Marchionne, who already has been the CEO of Fiat SpA and Chrysler, will chair the Industrial Executive Council, a new executive body at Fiat Industrial.
Fiat SpA includes Fiat Group Autos, Maserati, Ferrari, and has a 20% stake in Chrysler Group. The split will allow Fiat SpA to focus on the growth of the automotive business. Marchionne said it is possible that Fiat will increase its stake in Chrysler to over 50% this year.