Fiat To Spin Off Its Industrial Unit

FiatAuto manufacturer Fiat will separate its industrial business and sell it on the bourse by 2010 end as it eyes to produce six million cars annually by 2014.

The separated farming and construction equipment business would be referred as "Fiat Industrial," with an opening stock sale projected by 2010 end.

Sergio Marchionne, chief executive officer of Fiat made this announcement on Wednesday.

Income from the car-manufacturing facility will surge to 51 billion euro from 26.3 billion euro during the last year.

Group sales will total 93 billion euro by the next four years.

Marchionne stated, "There is no longer any reason to keep together two sectors that operate from such diverse industrial and financial logic. The existing structure no longer serves any useful purpose."

Moreover, Fiat also plans to double its production capacity in the country to 1.4 million vehicles by 2014 from the existing capacity of 650,000.

A report from the company stated that its first-quarter net loss narrowed to 25 million euro as against 410 million euro in 2009. (With Inputs from Agencies)