Fiat has announced the creation of Fiat Powertrain Technologies, a new operation that will integrate all of the Fiat group's activities in engines and transmissions.

The new company will operate in 12 countries with 26 plants and 16 research and development centres, and will combine the resources, employees and activities of Fiat Auto Powertrain, Iveco Powertrain, Magneti Marelli Powertrain (including Motor Sport), Iveco Motoren Forschung, and the powertrain research activities of Fiat Research Centre and Elasis.
 
Domenico Bordone, currently Magneti Marelli CEO, will be CEO of the new company, which will have its headquarters in Turin.
 
Fiat Powertrain Technologies, which is expected to have considerable future growth potential, will start operating with annual revenues of €6 billion, 20% of which will be from non-captive customers. It will employ over 23,000 employees: 11,000 drawn from Fiat Auto, 7,200 from Iveco, 3,800 from Magneti Marelli Powertrain and over 1,000 from the Fiat Research Centre, Iveco Motoren Forschung and Elasis.

With an annual output of over 2.2 million engines, some two million transmissions, and an extensive range of both power outputs and applications, Fiat Powertrain Technologies will be one of the most significant players in the automotive world, the company claimed in a statement.

"The ability to operate in an integrated way across a larger number of cutting-edge research and engineering centres, will bear significant advantages in the development of highly innovative and competitive products, as far as performance and costs are concerned," the statement added.

"This new business, which represents a fundamental step in the relaunch of the Fiat Group, will allow us to operate with greater flexibility and to leverage on the huge potential - particularly in the non-captive market - that up to now has been divided into different units," said Fiat Group CEO Sergio Marchionne.

"In Fiat's history, our competence in mechanical engineering and power unit production in particular, has always been undisputed in the automotive world. Diesel engines are an example, to name but one. In fact, at the new company, a group of high-profile technicians, who have been working for years on racing engines, including Formula One, will be devoted to the development and engineering of high performance engines."