Fiat Group has reached an agreement to sell its car service network Midas in Europe and South America to privately-owned French Norauto Group for €47.5m.

The Italian vehicle manufacturer said the sale would yield a €24m capital gain for Fiat. The Midas rapid-fit car service network comprises 607 outlets in Europe (France, Spain, Belgium, Italy, Austria, Switzerland, Poland and Portugal), nine in Brazil and four in Morocco.

The Norauto Group meanwhile, already boasts a network of 351 rapid- fit car service outlets in France, Spain, Belgium, Italy, Poland, Portugal and Argentina. The group trades under the Norauto, Maxauto, Auto5 and Carter Cash brands.

Fiat is currently looking to offload assets as the company attempts to recover from financial crisis. Sergio Marchionne, the company's new CEO, has already initiated a restructuring program designed to bring a turnaround of fortunes for the struggling Italian group.

Fiat lost a record €3.9 billion in 2002, and lost considerable market share to rivals like Peugeot Citroen. Refocusing Fiat on its core auto business has turned out to be a positive step thus far.

Source: Datamonitor