Fiat SpA shares were reported to have fallen more than 3% on Tuesday after investment bank UBS downgraded the car maker’s rating from neutral to reduce following its sacking last week of the head of its auto division.
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The Associated Press said Fiat was trading at €5.58 ($US7.28) on the Milan stock exchange at midday (11:00GMT) , its lowest level since December1 when it hit €5.54 ($7.23).
The investment firm UBS said Fiat’s divorce from General Motors Corp. followed days later by the departure of Herbert Demel as Fiat Auto CEO added risk to the firm’s recovery prospects. It downgraded the car maker’s rating from ‘neutral’ to ‘reduce’.
The Associated Press noted that, on Monday, Fiat announced its latest management shuffle, replacing the chief executive of the Maserati sports car brand, Martin Leach, with Karl Heinz Kalbfell, who will take charge of the new alliance between Maserati and Fiat brand Alfa Romeo.
