Fiat Will Reorganize in Line with its Four Brands
Fiat SpA said it is reorganizing its automobile business, creating four companies for its auto brands and renaming the auto division Fiat Group Automobiles SpA. The changes, which take effect Feb. 1, reflect the importance of the auto business to the company after turning around the once-unprofitable unit, Fiat said. The heads of the four brands will become chief executive officers of the new subsidiaries -- Fiat Automobiles SpA, Alfa Romeo Automobiles SpA, Lancia Automobiles SpA and Fiat Light Commercial Vehicles SpA. Until now, the brands were units of Fiat Auto. The name change comes amid increasing speculation by analysts that Fiat might spin off its auto businesses into a separately listed unit, having cleaned up its finances thanks to a strong sales performance by its flagship compact car, the Grande Punto, and better cost controls.