Fiat-Chrysler to split off Magneti Marelli by end 2018
Italian-American car group Fiat-Chrysler (FCA) is to split off its automotive supplier branch Magneti Marelli by the end of this year, beginning 2019, to bring it to the Milan stock exchange. That was announced by FCA in a press release on Thursday, which pushed the FCA shares up by 5,10% instantly.
FCA shareholders will get an equal share in the new company. Rumours of an upcoming separation or even of Magneti Marelli to be put in the shop window were spreading for some time already. Magneti Marelli was valued at 5 billion euro earlier.
Flexibility to grow
“The separation will add value for the FCA shareholders and give Magnetti Marelli at the same time the operational flexibility to grow in the years to come”, the car manufacturer said. According to CEO Sergio Marchionne the split off “is a key factor in the strategic plan for 2018-2022 that will be presented in June”.
Italian automotive supplier Magneti Marelli was founded in 1919 and employs some 43.000 people in 21 countries in 86 factories and 14 R&D centers. In 2016 the company realized a turnover of 7,6 billion euro. Magneti Marelli is active in lighting, car electronics, in-car entertainment systems, suspensions, exhaust systems and engine and braking parts.