Fiat splits off division

It becomes Fiat SpA through a demerger effective January 1. That leaves all the Fiat truck, tractor, industrial and marine businesses to create Fiat Industrial SpA, also to be listed as a public company. Both companies will adopt new logos.

Fiat SpA will include Alfa Romeo, Abarth, Fiat, Ferrari, Lancia and Maserati, as well as Fiat light commercial vehicles, along with the division of Fiat Powertrain Technology (FPT) responsible for cars and commercial vehicles, and the component companies Magneti Marelli, Teksid and Comau.

Fiat Industrial will contain CNH (which includes the Case, New Holland, Steyr and Kobelco), Iveco commercial vehicles (which include Iveco, Iveco Magirus, Iveco Astra and Iveco Irisbus brands) and the Industrial and Marine division of FPT.

It may appear a book entry but the split cleans up the Chrysler deal, putting all the cars into one basket and - hopefully - forming a unit that will swim on its own merits.

Fiat CEO Sergio Marchionne will be CEO of the new Fiat SpA and will also become chairman of Fiat Industrial.

Fiat SpA forecasts revenue of about $90 billion in 2014, up from $45 billion expected this year. Fiat Industrial predicts revenue of $40 billion in 2014, compared with about $27 billion expected this year.

The demerger immediately prompted the new Fiat SpA to announce it will join Chrysler in building Alfa Romeo and Jeep models at Fiat's Mirafiori plant in Turin. The plant will be retooled at a cost of about $1.5 billion to make models for global markets.