Fiat splits off division

Fiat CEO Sergio Marchionne (pictured) will be CEO of the new Fiat SpA and will also become chairman of Fiat Industrial.
Neil Dowling

Contributing Journalist

2 min read

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.

Neil Dowling

Contributing Journalist

GoAutoMedia Cars have been the corner stone to Neil’s passion, beginning at pre-school age, through school but then pushed sideways while he studied accounting. It was rekindled when he started contributing to magazines including Bushdriver and then when he started a motoring section in Perth’s The Western Mail. He was then appointed as a finance writer for the evening Daily News, supplemented by writing its motoring column. He moved to The Sunday Times as finance editor and after a nine-year term, finally drove back into motoring when in 1998 he was asked to rebrand and restyle the newspaper’s motoring section, expanding it over 12 years from a two-page section to a 36-page lift-out. In 2010 he was selected to join News Ltd’s national motoring group Carsguide and covered national and international events, launches, news conferences and Car of the Year awards until November 2014 when he moved into freelancing, working for GoAuto, The West Australian, Western 4WDriver magazine, Bauer Media and as an online content writer for one of Australia’s biggest car groups. He has involved himself in all aspects including motorsport where he has competed in everything from motocross to motorkhanas and rallies including Targa West and the ARC Forest Rally. He loves all facets of the car industry, from design, manufacture, testing, marketing and even business structures and believes cars are one of the few high-volume consumables to combine a very high degree of engineering enlivened with an even higher degree of emotion from its consumers.
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