© ljupco smokovski dreamstime.com Electronics Production | October 23, 2018
Fiat Chrysler to sell its automotive components business
Fiat Chrysler Automobiles has entered into a definitive agreement to sell its automotive components business Magneti Marelli to CK Holdings, a holding company of Japanese automotive component supplier Calsonic Kansei.
Following the closing of the transaction, CK Holdings will be renamed as Magneti Marelli CK Holdings. The combined businesses of Calsonic Kansei and Magneti Marelli will create one of the biggest independent automotive components supplier based on total revenues. The agreement represents a transaction value of EUR 6.2 billion and is expected to close in the first half of 2019; subject to regulatory approvals and other customary closing conditions. The new entity will operate out of nearly 200 facilities and R&D centers across Europe, Japan, the Americas, and Asia Pacific. FCA has also agreed to a multi-year supply agreement that aims to strengthen a mutually beneficial relationship for both Magneti Marelli and FCA's expanding model range and which will sustain Magneti Marelli's Italian business operations. The combined company will be led by Beda Bolzenius, currently CEO of Calsonic Kansei, based in Japan. Ermanno Ferrari, CEO of Magneti Marelli, will join the Magneti Marelli CK Holdings board.