P.M. BRIEFING : Ford, Fiat to Merge Farm Units

Ford Motor Co. and the huge Italian industrial company Fiat Group today announced a joint venture combining their farm equipment operations.

Fiat will own 80% of the new company, and Ford will hold the rest. The new company will combine Fiat’s FiatGeotech subsidiary and the Ford New Holland subsidiary.

Ford said it will receive an undisclosed cash payment from Fiat.

The agreement is subject to government approvals.

The companies said worldwide markets and identities of both companies will be preserved in the joint venture. They also said that Fiat, as a majority owner, will continue the current pay and benefits for Ford New Holland employees, who are covered by contracts negotiated by the United Auto Workers union.

Ford has been negotiating with Fiat for months over a deal involving its tractor-making division. Ford, which is in final negotiations for the sale of its Ford Aerospace Corp. subsidiary, has said it wants to concentrate on its core car and truck making operations.