How the Ferrari Fallout Is Affecting Fiat's (FIATY) Stock

This story has been updated from 11:18 am EDT with additional information.

NEW YORK (TheStreet) -- Shares of Fiat (FIATY) rose 2% to $10.33 as Fiat Chrysler CEO Sergio Marchionne said he saw no reason at present to review the carmaker's 2014 financial guidance despite weakness in Europe and Latin America, Reuters reports.

"I have no (basis for) ... suggesting I won't (meet guidance)," Marchionne told reporters during an event, adding that Fiat traditionally only reviews its guidance once the third quarter is over, according to Reuters.

"Europe is what it is, Latin America is having a rough patch. We are holding our own in Latin America. We do have a structural advantage on our competitors in Brazil because of our cost structure," he said.

After poor second-quarter results from Fiat, analysts were widely expecting a cut in guidance.

Marchionne said the third quarter should go well: "We are waiting for results for September, which is an important month. In America we are going well."

The news comes as Luca Cordero di Montezemolo, Ferrari's longtime chairman, resigned on Wednesday, to be replaced by Marchionne. Fiat owns 90% of Ferrari.  Montezemolo's resignation will be effective on Oct. 13 -- the same day that Fiat and Chrysler are expected to list as a newly merged company on the New York Stock Exchange.

Montezemolo is to be paid a severance package of roughly $35 million -- one of the biggest severance packages paid in recent years to Italian executives, according to The Wall Street Journal.

Marchionne said at a news conference on Wednesday that his appointment as Ferrari chairman isn't temporary, but that does not have intentions replacing Ferrari CEO Amedeo Felisa, according to the Journal. He also said that Ferrari will remain independent from the rest of Fiat, the article stated.

FIATY Chart FIATY data by YCharts

 

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