According to analysts, Italian automaker Fiat SpA said on Thursday it would divest itself of its industrial operations, creating even stronger ties with Chrysler Group.

Chief Executive Officer Sergio Marchionne in Turin, Italy, while unveiling the firm's five-year plan, said, "Today, Fiat enters a new chapter in its history and takes on a new shape. The time is now right to proceed with a spinoff," said.

"People at Chrysler should be very excited," said Industry analyst Aleks Miziolek, director of Dykema PLLC in Detroit.

It would form Fiat Industrial, which will be comprised of Iveco's commercial and truck division and CNH, which produces farm and construction equipment, Fiat has said.

The News further said that Fiat Industrial would also include the firm's marine and industrial powertrain divisions.

Joe Phillippi, an analyst at AutoTrends Consulting Inc., said, "I can't think of any cons."

It was also noted by the reports that Fiat owns 20 percent of Chrysler, but has taken over management of the U. S. company that went through bankruptcy last summer.

In the first quarter, however, Chrysler reported revenues rose 3 percent to $9.7 billion, putting together a $143 million operating profit January through March.

It was also reported that Fiat, which lost $549 million in the first quarter a year ago, lost $28 million in the same period this year. (With Inputs from Agencies)