UBS has cut Fiat’s rating from “buy” to “neutral”. UBS cites its cautious views on car demand in Europe and Brazil as well as heavy trucks and machinery, the areas in which Fiat are strongest. UBS notes that Sergio Marchionne’s grand scenario of spinning off Fiat’s auto division is still the company’s goal, and PSA Peugeot-Citroen as a “likely candidate”. In the near term, UBS thinks that Fiat’s market share price of €10 per share is fair, as a consolidated manufacturer. Another reason why UBS cut Fiat: Chrysler. The article finishes with a stark warning that the “value of Chrysler to Fiat has been cut to 1 euro from 2 euros.” In the interest of fairness, we shouldn’t listen too much to the stock market as these are the same people who proclaimed that the banking sector was in rude health, right up until they asked for a bailout, catching the market “by surprise”. Especially considering Sergio Marchionne is the non-executive vice chairman of UBS’s board of directors. These caveats aside though, it’s important to note that Chrysler has realistically gotten Fiat no closer to the magical 5m annual sales number it needs to spin off its auto business, nor has it added real value. And Marchionne is apparently eying up PSA as the next target in his mad march to world domination. What a gas.