Fiat to enter new era with new chief
- Source: Xinhua
- [13:50 April 22 2010]
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"For years, investors have been asking us to spin off our automotive division and now that we have completed our restructuring program there is no reason to keep such different sectors together," Marchionne said.
Fiat's new business plan "represents a unique chance to break with the past and embark in a new era," the CEO added.
Last year, Fiat obtained 20 percent and management control of American car giant Chrysler through a bankruptcy restructuring sponsored by the US government.
Once certain benchmarks are met, the share-holding can be increased to 35 percent, and later to 50 percent or even more.
During the presentation of the new plan, Marchionne, who is also Chrysler's CEO, stressed that partnership with Chrysler was a very important step for Fiat's future.
He said that Fiat and Chrysler together will sell a total of 6 million vehicles before the end of 2014, but despite expansion abroad Fiat's roots "are and will remain in Italy."
Confirmation of the spin-off, which had been widely anticipated, had an immediate effect in Milan where Fiat's shares leapt 3.5 percent with 11.1 percent of the group's stock capital changing hands.
The group was also expected to present its new car models and financial objectives, after it suffered a loss of 283 million euros ($380 million) in the last quarter of 2009 and a loss of 848 million euros ($1,138 million) for the full year last year.
