Fiat has named Gabriele Galateri as its new chief executive.

The move increased hopes that the group's car unit could be sold and briefly boosted the company's share price.

Mr Galateri had previously run two Agnelli holding companies and will share the chief executive position with Fiat chairman Paolo Fresco, Fiat said.

Mr Galateri said Italy's largest private industrial group could get over its problems.

On Wednesday, credit ratings agency Moody's downgraded its rating to one notch short of "junk".

Fiat's stock is 30% lower on the year, but ended up 0.6% on the day.

Umberto Agnelli, younger brother of family patriarch and Fiat Honorary Chairman Gianni Agnelli, said last month that Fiat Auto could be sold -- an option Gianni Agnelli is believed to oppose.

Mr Galateri, 55, has worked with the Agnelli family since 1977.