Look for Fiat-Chrysler Automobiles to carry out its second spin-off in recent years next year. FCA CEO Sergio Marchionne confirmed to Reuters the automaker will separate its Magneti Marelli parts business in 2018.
Marchionne told reporters on the sidelines of an event in Rovereto, in northern Italy, that spinning off Magneti Marelli is the best business case and will unlock the most value. FCA has worked diligently to reduce its debt with a goal to be debt positive by the end of 2018. Currently, FCA holds a net industrial debt of $5 billion. With the sale of Magneti Marelli, FCA will be one step closer to its goal—the parts division is reportedly worth $6 billion.
In the past, Alfa Romeo and Maserati have also been on the table, though Marchionne reiterated previous comments that separating either luxury division from the automaker is premature. In fact, FCA will hold onto both brands for the foreseeable future. Marchionne said an Alfa Romeo or Maserati spin-off may not occur during the automaker’s next business plan phase, which begins in 2018 and runs through 2022. Of course, Marchionne himself won’t be around by then, either, as he plans to retire in 2019.