Fiat Chrysler Automotive (FCA) has now sold its car-parts unit, Magneti Marelli to Calsonic Kansei for EUR 6.2 billion. The sale of FCA's parts unit is the first big deal made by newly appointed FCA CEO Mike Manley after he took over the reigns following the sudden death of Sergio Marchionne. The transaction also creates the Japan-based Magneti Marelli CK Holdings under which both Calsonic and Marelli will operate.
“Having carefully examined a range of options to enable Magneti Marelli to express its full potential in the next phase of its development, this combination with Calsonic Kansei has emerged as an ideal opportunity to accelerate Magneti Marelli’s future growth for the benefit of its customers and its outstanding people. The combined business will continue to be among FCA’s most important business partners and we would like to see that relationship grow even further in the future,” said Manley.
The newly formed Magneti Marelli CK Holdings will allow both companies to further expand their business in supplying parts to automakers all over the globe; operating from nearly 200 facilities and research centers across Europe, Japan, the Americas, and Asia Pacific. More so, development costs of future technology such as autonomous driving, connected cars and electric vehicles could be lessened. At the same time, growth for the two is expected to be accelerated.
Calsonic Kansei is a global manufacturer which builds a host of auto parts but specializes in thermal products, exhausts, interiors and electronics. Meanwhile, Magnetti Marelli specializes in lighting, powertrains, electronics, exhausts, suspensions, and motorsports.
“Our industry has gone through fierce change in recent years and the phase to come will be even more dynamic. It is exciting to form a strong platform for Calsonic Kansei and Magneti Marelli to work together and create a competitive automotive supplier which is extremely well placed among the global Top Ten,” said Beda Bolzenius, CEO of Calsonic Kansei