Fiat may spin off car business

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scottm
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Fiat may spin off car business

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Fiat may spin off car business
http://www.allpar.com/news/index.php/20 ... r-business
Even as Luca Cordero di Montezemolo announced he will step down as chairman of Fiat S.p.A., sources say the Italian conglomerate may announce as early as tomorrow that it will spin off its car business.

The unnamed sources say banks have already been contacted about funding the spinoff, which could be completed by the end of this year.

Fiat’s various automotive enterprises contributed about 56% of the company’s total revenue in 2009 and separating them from the parent company would give CEO Sergio Marchionne more freedom to pursue additional alliances and the funding to implement international expansion. The sources say Fiat is already planning a reorganization of its automaking businesses.

Montezemolo is giving up the chairmanship the day before Marchionne announces Fiat Group’s five-year business plan but will remain chairman of Ferrari and may go into politics. He has clashed with Marchionne over the latter’s vision for the future of the car business.

Montezemolo will be replaced as chairman by vice chairman John Elkann.
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scottm
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Re: Fiat may spin off car business

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Or ... maybe not.

Fiat to spin off truck lines, keep cars and Chrysler
http://www.allpar.com/news/index.php/20 ... d-chrysler
In a move that caught many industry-watchers by surprise, Fiat will keep its automotive operations and spin off its Iveco large truck and Case New Holland businesses into a new entity, Fiat Industrial S.p.A. Analysts had expected the car business to be separated.

Instead, Fiat CEO Sergio Marchionne said Chrysler will be further integrated into the Italian company’s automotive and light commercial vehicle lines

“We have found in Chrysler the perfect partner and we have been able to agree on some very basic principles. It is a dream that I have had since 2004,” Marchionne said.
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