Fiat CEO could mull auto ops spin off; sees microcar launch in 2009 UPDATE
12.10.07, 9:11 AM ET

















(adds further comments on Russia, US, Brazil ops)
MILAN (Thomson Financial) - Fiat (nyse: FIA - news - people ) SpA CEO Sergio Marchionne said in an interview with Automotive News Europe that he could consider spinning off the Fiat Group Automobile unit if the market fails to fully value the group's shares.
In a wide-ranging interview, Marchionne said he sees a late 2009 launch for the so-called microcar, which would be 'much smaller' than the latest 500 'A' market segment car, launched in July this year.
On a possible auto unit spin-off, favoured by some leading analysts, he said: 'It is not a matter of group organisation, but of the group's shares trading at a discount to the sum of the parts.
'The conglomerate discount is an argument that could have legs. So far, Fiat has not suffered it, but if it did happen and it was a permanent value loss, we could consider a spin-off,' he said.
'This value leakage has to be measured against the loss of the group-wide synergies' identified in Fiat plans, he said.
Fiat Group Automobile unit comprises the Fiat brand, Alfa Romeo and Lancia.
Marchionne said in the interview that Fiat is reluctant to concede market share in the 'A' segment of smaller cars, adding the microcar model would be built on a shortened A segment platform.
'The only thing I can say is that the styling model that I saw of this (microcar) is truly beautiful,' he said.
Marchionne commented on Fiat's previous interest in acquiring Ford's Jaguar and Land Rover, saying he was attracted by Land Rover's US distribution network and Jaguar's platforms and powertrains.
Fiat would have used both to boost Alfa Romeo and its models, he said.
'At the same time, we felt we would not be able to manage the Jaguar and Land Rover brands while also leading the proper execution of the Fiat Group Automobiles re-launch plan,' he said.
Fiat remains ready to talk with the future owner of Jaguar and Land Rover about possible cooperation, he said.
Fiat's partner Tata is seen as a front-runner to acquire the two brands.