FCA Vows to Spin off Magneti Marelli in 2018

Fiat Chrysler Automobiles NV aims to spin off its Magneti Marelli components business next year as an independent listed company, CEO Sergio Marchionne tells reporters.

He also reiterates that doing the same for FCA’s Alfa Romeo and Maserati brands could happen too, but probably not until after 2022.

Rumors about FCA eventually spinning off all three entities most recently surfaced in August. They suggested that Magneti Marelli—along with the company’s Comau industrial machinery and Teksid metal castings operations—could fetch a combined €5 billion ($5.9 billion).

The value of Alfa and Maserati have been estimated at €7 billion ($8.3 billion). Analysts note that spinning off those upscale brands would position FCA more clearly as a mainstream carmaker and make it a stronger merger candidate.