FCA is mulling sale of its luxury car brands like Maserati and Alfa Romeo along with component maker Magneti Marelli
Just a few days ago, we reported that FCA is mulling the option of selling its luxury car brands like Maserati and Alfa Romeo in order to streamline its operations. Now, the brand is also mulling the sales of famous automotive component maker Magneti Marelli and it is likely to be sold next year.
Magneti Marelli is known for making global standard automotive components like lighting, engines, exhausts, electronics, suspension etc. Selling this company will boost FCA’s finances as the brand is aiming to increase profitability by reduce costs by the end of 2018. While the Maserati and Alfa Romeo spin off is not yet confirmed, Fiat Chrysler CEO Sergio Marchionne has indicated that selling Magneti Marelli is obvious.
Also read: FCA Mulling Sale Of Maserati And Alfa Romeo
Interestingly, FCA and its subsidiary brands have been the subject of takeover speculation in recent times. Just a few months back, China’s Great Wall showed interest in buying the iconic American SUV manufacturer Jeep. Apart from that, South Korean auto major Hyundai also showed its interest in purchasing FCA. However, Fiat Chrysler CEO clears such deals are not going to take place soon.
The automobile group is current focusing on its business plan next few years and spinning of couple of brands come as part of that strategy. Meanwhile, Tata Motors owned British luxury car brand Jaguar Land Rover is gearing up to purchase a new luxury car brand. The new brand is speculated to be either Alfa Romeo or Maserati. Tata Motors too is fully supporting JLR in this move.
In the meantime, FCA boss says that the group is not very keen to narrowly focus on the electrification of the cars in order to tackle the emission problem like the rest of the industry. Instead, it wants to emphasise on developing and implementing a combination of technologies that will help the brand to overcome the problem.