This content is not available in your region

Fiat splits to grow

Fiat splits to grow
Text size Aa Aa

A new year and a new Fiat with the Italian company split in two as Chief Executive Sergio Marchionne tries to revamp it to increase growth and help forge new alliances.

The part of Fiat that makes cars is now a stand-alone business.

It has been separated from Fiat Industrial, the division that includes truck maker Iveco and tractor company CNH Global.

The plan is for the car manufacturer – Fiat Spa – to produce six million vehicles annually by 2014, with revenue doubling to 64 billion euros.

Fiat Industrial’s trucks, construction and farm equipment are targeting 29 billion euros annual revenue by the same date.

CEO Marchionne has said the split was necessary as the car and non-car parts of the business have different strategies, markets and capital needs.

At a ceremony at the Milan stock exchange to mark the first listing of Fiat Industrial Marchionne said he currently has no plans to merge Fiat with US carmaker

Chrysler of which it owns twenty percent but may raise its stake to 51 percent if Chrysler returns to the stock market this year.

Fiat Spa’s shares rose four percent on the first day of trading and Fiat Industrial’s gained three percent.