Fiat’s auto and industrial units would each have €2.5 bln net industrial debt
By Andrew, 18 Sep, 2010. 0 Comments
2011 Fiat Panda
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]
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