Fiat Names New CEO, Sells Piece of Ferrari

Struggling Italian car maker Fiat named a new chief executive renowned for his financial savvy and agreed to sell a chunk of prized sports car unit Ferrari as it tries to extricate itself from debts and mounting losses.

A day after Fiat’s debt was downgraded by ratings firm Moody’s Investors Service to just one notch above “junk,” new CEO Gabriele Galateri said he was confident one of Italy’s most famous companies could emerge from its latest crisis.

Galateri, 55, was drafted from running two holding companies owned by Fiat’s controlling Agnelli family. He will share the CEO post with Fiat Chairman Paolo Fresco, Fiat said.

Fiat announced the sale of 34% of Ferrari to a group of banks led by Mediobanca.