Fiat’s auto and industrial units would each have €2.5 bln net industrial debt

Article by Christian A., on September 18, 2010

Fiat S.p.A. said that after the spinoff that slated to be completed by the end of 2010, its auto and industrial units would each have 2.5 billion euros ($3.3 billion) net industrial debt. During the shareholder meeting that formally approved the split, CEO Sergio Marchionne provided the breakdown.

The split, designed to unlock the value of the industrial unit, could also lead to the eventual merger between Fiat and Chrysler, in which Fiat has management control and a 20% stake.

Marchionne, who is credited for having made Fiat as one of Europe's top turnaround stories, said that from the industrial and financial standpoint, he thinks that this is “the only route” to guarantee the “best strategic development” for each business.

The auto unit, Fiat S.p.A., will hold Fiat's car assets, its parts and powertrain segments and other units. There’s a prediction that in 2014, it will double revenues to 64 billion euros.

Marchionne wants to see this industrial unit listed on the Milan stock exchange as of Jan. 3. This includes the Iveco trucks group, the CNH Global NV farm and construction equipment unit, and industrial and marine businesses.

Revenues are anticipated to get to 29 billion euros in 2014. Fiat had declared that industrial debt would be divided equally between the two units, even if at the end of 2009, the auto unit's net industrial debt was 741 million euros and the industrial unit's was 3.7 billion euros. [via reuters]

Topics: fiat

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries