Italian company FIAT is to sell its subsidiary, FIATAVIO, specialised in aircraft engines and missiles (turnover EUR 1.534 billion in 2002 with 500 employed) to the US investment fund THE CARLYLE GROUP, associated for the occasion to the Italian defence and aeronautics group FINMECCANICA. The operation will cost EUR 1.6 billion. It will help to reduce FIAT's net indebtedness to EUR 1.4 billion (compared to EUR 3.8 billion on 31 December 2002).