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Fiat Chrysler exploring $3.3 bln sale of auto parts unit Magneti Marelli

Discussion in 'Fiat Global News' started by cassini, Jul 18, 2015.

  1. cassini

    cassini Amatore

    Grande Punto 1.3
    Fiat Chrysler Automobiles (FCA) is considering whether to sell its auto parts maker Magneti Marelli after receiving interest from potential buyers, according to sources familiar with the matter. [via business-standard.com]
    prabhjot and Dr. Fixated like this.
  2. Dr. Fixated

    Dr. Fixated Novizio

    Linea 1.3
    According to this news item by AutocarIndia (Link), Hyundai and Renault are also planning to use AMT technology for their vehicles too. Regarding the criticism of lack of smoothness; you can drive it in 'manual' mode and up-shift the gear only when you want to and it will down-shift on its own when the RPM goes down, thereby having greater control.

    This article says that it is the cheapest way to own an automatic car and is more fuel-efficient than conventional auto 'boxes. And that this is the reason why it has proven to be a hit among the masses. It is a big hit in India and this must have (surely) been factored in the valuation figure of $3.3 Billion.
    --- Double Post Merged, Jul 18, 2015, Original Post Date: Jul 18, 2015 ---
    Found this four months old news item (Link) discussed in another forum. It talks about Magneti Marelli aiming to doubling its revenue in India in the next three years to reach 3000 Crores per annum. They are aiming to the reach the capacity of 2 Lakh units by Q3 of FY16.
    prabhjot likes this.
  3. prabhjot

    prabhjot Esperto

    delhi ncr
    Marchionne sees permanent global sequential/simultaneous economic troubles, esp for the car industry, and esp for FCA since FCA has a lot of debt from the takeover of ChryslerDodgeJeepRam, the HUGE investments in new/revamped plants in America (desperately needed, since they'd been badly neglected), new plants in Brazil and several new/revamped ones in Italy, big new ongoing investments in China and the big 280 million dollar one for Jeep etc in Ranjangaon.....

    not to mention the 48 billion (+ or minus) dollar investment plan through to 2018 for Alfa (including the new rwd platform+different architectures, plus all-new turbo and V6 petrol, some diesel and even mild-hybrid engines), new Fiats, new Maseratis, and of course new Jeeps and other American-brand models.

    He also needs money, since he's been saying so openly, for 'consolidation': namely, Mergers and/or Acquisitions and/or share-swapping strategic cooperation. Suzuki? Tata Motors? Peugeot Citroen? Maybe even parts or the whole of GM when the next American recession hits?

    PLUS: the Agnellis have invested a fair bit in FCA, but have recieved not a penny of dividends despite the wondrous financial saving and and now relative thriving of the bankrupt American brands and the (due to the 4 year long European deep car recession) losses of Fiat Europe.

    They've committed to taking none either till 2018. But through the 10% stake sale in Ferrari and this potential sale of Magneti Marelli they get to recieve a 'payout', a big 'capital gain', even if only on paper (for now)?
    asimpleson and Dr. Fixated like this.
  4. prabhjot

    prabhjot Esperto

    delhi ncr
    FCA is recieving large and lucrative interest in a purchase from them by giant chinese firms of COMAU, fca's manufacturing-robots and production-systems firm.


    And a few weeks earlier:

    Discussions, most likely on some sort of JV between Magneti Marelli and Samsung for automotive components, esp lighting, telematics and ev-reltaed technology (samsung is already making a push into automotive, starting with batteries for hybrids and ev-s, etc.) The scion of the Samsung chaebol-owning family is already a member of the board of EXOR, the agnelli family holding company that controls fca, ferrari, case new holland, the economist magazine, juventus football club, partnerRE re-insurrance, etc etc.

    Last edited: Oct 7, 2016
    asimpleson likes this.
  5. prabhjot

    prabhjot Esperto

    delhi ncr
    The talks between FCA concerning a possible sale or, instead, a jv combined firm between (parts of) Magneti Marelli and (parts of) Samsung concerning automotive display, telematics, ev and 'autonomous driving' tech has been postponed or perhaps even rendered impossible by the crisis engulfing Samsung due to the 'case of the exploding Note7 batteries'.

    It would appear that this deal or one like it (i.e., a potential sale of parts of MM to say a Chinese firm or to say PE funds) is essential to the declared official FCA objective of eliminating its net debt by end 2018, and instead reaching an approximately 4-5billion$ net-cash position by then.
    PradeepM likes this.
  6. prabhjot

    prabhjot Esperto

    delhi ncr

    A sale or spinoff-cum-JV partnership 'deal' is imminent, for Magneti Marelli and/or COMAU (the manufacturing process-automation and manufacturing robotics subsidiary of FCA/the -former-Fiat-Group)? MM should be worth at least 3 billion$ and COMAU at least 1 billion: they are both profitable, have immense often industry-leading intellectual prpoerty, have very full order books and in MM's case rising profit margins too.

    Also there is the very strong likelihood of a JV under negotiation (with BAIC, an old partner of the Chrysler Corp i.e., Jeep in the pre-reforms, Mao/Deng X years) for the local assembly and/or manufacture of Chrysler (and/or Alfa Romeo) branded models in China (and for exports out-of-China?) esp in hybrid, phev and/or ev form: by end-2018 or so, it is rumoured in the Chinese business press.

    There are rumours that FCA/Marchionne/EXOR-Agnelli-s may be looking for a full-on JV of the firm as-a-whole to a large Chinese, invariably state-backed/owned, autofirm such as BAIC, GAC or even the gigantic SAIC? Most unlikely, imo, if not impossible. THAT 'big merger deal WILL happen ineviatbly around the time of Marchionne's retirement and/or at the time of the next big-recession-globally (by 2019?) BUT not to/with a Chinese firm. Instead: either Peugeot-Citroen and/or VW group and/or Ford and/or part-of-GM/OPEL/GM-latam remain the likeliest, imo?

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