According to foreign reports, Fiat Auto's shareholders recently passed a plan to split truck, agricultural machinery and construction machinery businesses.
In January 2011, Fiat Industries will be separated from the Fiat automotive business, and Fiat Industrial shares will be distributed to existing Fiat shareholders in a 1:1 ratio. After the split, Fiat and Fiat Industries will be trading on their own in the Milan Stock Exchange and will be managed independently by their respective management team and board of directors.
However, the Fiat split plan was opposed by the independent union of the CUB. After the union is concerned about splitting, Fiat will pay more attention to the U.S. business and thus ignore the interests of Italian workers.
On September 16th, Fiat CEO Malchone said that by 2014, Fiat expects the annual production of automobiles will reach 6 million vehicles. Fiat now holds a 20% stake in Chrysler, and plans to expand its share to 35% by the end of next year.
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