New executives will try to put Fiat Autos troubles behind them

Fiat said it would inject up to 5bn euros into Fiat Auto - 3bn would be handed over immediately - and that it had cancelled debts the auto unit has with other Fiat units.

Fiat Auto - the main cause of the parent company's problems - also reported its worst full-year loss to date of 1.34bn euros ($1.4bn;�917m) after sales declined by 9.4%.

The results were released after a board meeting at which Umberto Agnelli replaced Paolo Fresco as chairman and Giuseppe Morchio, formerly at tyremaker Pirelli, became chief executive.

The boardroom shake-up was announced earlier in the week.

Mr Agnelli is the head of the family that controls 30.4% of Fiat and the brother of the late Giovanni Agnelli, who ran the company until his death.

More for sale

The group said its net debt was 3.8bn euros at the end of the year after heavy assets sales, including most of its 6% stake in General Motors.

It added that it was close to selling off Fiat Avio and had received offers for insurer Toro - the two together are valued at about 4bn euros ($4.3bn;�2.7bn).

"We expect binding offers for both companies by the end of the first half," Fiat said in the statement.

In 2000, Fiat sold 20% of the company to GM with an option to sell the remainder in 2004.

The company's business accounts for about 5.4% of Italy's gross domestic product.

Fiat shares fell 4% after the results came out to 7.15 euros.