FCA Affirms Plans to Spin Off Magneti Marelli

Fiat Chrysler Automobiles NV says it has authorized management to develop and implement a plan to divest its Magneti Marelli parts business by early next year.

Following the separation, Magneti Marelli would be listed on the Milan stock exchange. Shares of the new company would be distributed to FCA stockholders.

FCA has been considering spinning off Magneti Marelli for more than two years. After several previous attempts stalled, the efforts gained momentum this year. Last month FCA announced it was conducting a detailed review of the partsmaking unit.

Divesting Magneti Marelli would strengthen FCA capital position and refocus the company’s efforts on its core operations, the carmaker says. Separating from FCA also would give greater operating flexibility for Magneti Marelli.

More information about the proposed spin-off will be announced in June when FCA details its 2018-2022 business plan. The deal also needs to be approved by regulators and FCA’s board of directors.