Fuel Systems Solutions, Inc. (FSYS)

[Democritus_of_Abdera]

FSYS Management Shakeup ...

Yesterday (June 27, 2012), a press release revealed that there has been a change in management structure at FSYS. see: http://finance.yahoo.com/news/fuel-systems-solutions-updates-management-214941827.html

My interpretation of the change is that:

1) Mariano Costamagna has solidified his position and is likely to renew his tenure as CEO when his current contract ends at the end of 2012.

the company has formed an executive committee headed by Mariano Costamagna, Fuel Systems' CEO, who is resuming the title of President and consisting of CFO Pietro Bersani and five executive directors, including Roberto Olivo, now global operations & supply director and formerly Co-President and head of the BRC Division, two marketing and sales executive directors and two engineering executive directors.

2) The possibility that the IMPCO division will be divested has increased (i.e. it appears that this division is not adequately represented on the new executive committee and the division has been simplified by reassignment of the US automotive unit to the BRC unit).

The executive committee will oversee Fuel Systems' strategy and manage operations in two divisions: FSS Automotive, consisting of the company's passenger and light duty commercial transportation (OEM), automotive aftermarket, and transportation infrastructure operations, as well as the US Automotive unit (formerly a part of the IMPCO division); and FSS Industrial (formerly IMPCO), consisting of the company's industrial mobile and stationary and auxiliary power unit (APU), and the heavy duty commercial transportation operations.

3) The nascent US automotive division has not met expectations and is at risk of being marginalized.

Fuel Systems management is conducting a thorough review of costs and revenue outlook in US Automotive operations. Of priority will be maintaining continued strategic US marketplace development and showing excellence in customer service and responsiveness in a more efficient manner.