Fiat gets approval to hive off non-car business

TURIN, ITALY: Shareholders on Thursday put Fiat’s ambitious chief Sergio Marchionne within reach of his dream to position the iconic Italian automaker as a force to reckon with in the global marketplace. Italy’s largest private employer, created by the legendary Agnelli family and a symbol of the country’s post-war industrialisation, won the green light to spin off its non-car activities.

John Elkann, Fiat’s 34-year-old president and the grandson of historic boss Gianni Agnelli, thanked the shareholders for their approval by a large margin, calling the vote a “historic” event that “gives birth to two Fiats.”

Marchionne is positioning the group for the global fray as major world automakers seek new alliances, a year and a half after orchestrating a tie-up with near-bankrupt US automaker Chrysler, of which Fiat now owns 20%. “It’s a very good day for the auto branch,” since it will “be able to choose its own destiny,” CEO said.