Milan: Fiat says its board has approved its demerger creating two companies as the Italian automaker reports a return to second quarter profits with earnings of €90 million.
Fiat’s board on Wednesday approved the plan to separate its industrial and auto businesses into two distinct companies in order to give birth to a global automotive company that will incorporate Chrysler LCC. The plan was announced in April.
Fiat’s second-quarter earnings compares with a loss of €168 million ($238 million) in the same period last year. Fiat said in a release that the improved earnings were due to an increase in sales especially by its auto and agriculture businesses.
Fiat sells cars under the Fiat, Lancia and the Alfa Romeo brands, as well as trucks, farm and construction equipment.