Italian car giant Fiat unveiled today details of a five year strategic plan, including the by-year-end separation of its auto business from its construction and truck business, according to dpa. Fiat chief executive officer Sergio Marchionne outlined details of the 2010-14 strategy during a six-hour investors' conference at the Turin-based company's headquarters. Earlier Fiat had issued its first quarter results showing that its net loss had narrowed to 21 million euros (28 million dollars) from 411 million euros in the same period last year. But during his presentation, Marchionne warned that car sales in Fiat's home market Italy could drop by as much as 30 percent without the state incentives that were available in 2009. Marchionne said Fiat intended to invest some 26 billion euros in Italy by 2014 with an additional 4 billion for research and development. "The level of investments destined for Italy is enormous, and amounts to two thirds of all those of the Fiat Group at world level," Marchionne said. Labour unions and Italian government ministers have in recent months expressed concern over Fiat's commitment to Italy, especially in the wake of the company's acquisition of a controlling stake in troubled US car maker Chrysler. Over the next five years Fiat also intends to launch 34 new car models in Europe and undertake a re-styling operation with 17 others, Marchionne said. Of these two-thirds would be manufactured by Fiat and the remainder by Chrysler, he added. By 2014 Fiat and Chrysler would aim to sell 6 million cars in Italy, Marchionne said. Other results released by the company showed that Fiat's first quarter revenues rose 15 per cent to 12.9 billion euros. Fiat reported trading profit - operating profit excluding one-time items - of 352 million euros compared with a loss of 48 million euros in the first quarter of 2009. Fiat also confirmed its 2010 targets for trading profit and net debt.
