CEO calls Fiat split essential

TURIN, Italy, Jan. 3 (UPI) -- Italian manufacturing giant Fiat's split into two companies was a critical step, Chief Executive Officer Sergio Marchionne said Monday.

Fiat's split debuted on the stock market Monday with Fiat Industrial, which makes farm and construction equipment, spun off from Fiat Spa, which includes Fiat Group Automobiles, Ferrari, Maserati, Magneti Marelli, Teksid and Comau, the Italian news agency ANSA reported.

The company's powertrain division was also split into industrial and automotive concerns.

Marchionne called the split "a very important moment for Fiat because it represents both a final destination and a starting point."

He said the firm "could no longer keep together sectors that have no industrial or economic characteristics in common."

Shares of Fiat Industrial rose 1.78 percent Monday, while Fiat Spa shares rose 4.16 percent, but analysts said share prices would likely settle down after investors figure out how to value the two firms.

Marchionne had resisted pressure to break up the company due to Fiat taking controlling interest in Chrysler in 2009.

He said it was "possible, not probable," that Fiat would jump its stake in Chrysler from 20 percent to 51 percent this year.

"Today there's no plan for a merger between Fiat and Chrysler," he said.