Fiat Auto will be broken into four distinct operating groups, the company said, in an attempt to reinforce its various brands.

Sales at Fiat Auto, which accounts for 46 percent of the company's revenue, fell 9.3 percent.

Fiat Auto lost 394 million euros in the period, offsetting profits at almost every other division except for insurance.

Fiat Auto is 8 billion euros in debt and has posted an operating loss in five of the last six years.

"We can now clearly focus on the operational objectives of Fiat Auto," a subsidiary.

Fiat Auto has had an operating loss in five of the last six years and is not forecast to break even until next year.

But Fiat Auto is the engine that drives the rest.

That would put Fiat Auto in the right industrial environment.

G.M. will also have the right to make an offer in the future for the remaining 80 percent of Fiat Auto.

In the first half of 2002, Fiat Auto lost nearly $800 million, dragging down the overall company.