Fiat Chrysler CEO says approached by several suitors for Magneti Marelli

Fri Aug 26, 2016 3:11pm EDT
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By Bernie Woodall

STERLING HEIGHTS, Mich. (Reuters) - Fiat Chrysler Automobiles (FCHA.MI: Quote) (FCAU.N: Quote) has been approached by several suitors for its components business Magneti Marelli, the carmaker's chief executive said on Friday, without giving names or mentioning how many had shown interest.

Sergio Marchionne also indicated it is still possible that FCA will continue production of the compact Dodge Dart and the midsize Chrysler 200 sedans, despite much skepticism by industry analysts about the automaker's chance of landing a production partner for sedans in the U.S. market.

"We’ll have an answer, hopefully, soon," Marchionne said, adding, "to the extent that we can share the work with somebody else, we’ll probably do it."

Marchionne said FCA is in discussions with several possible partners about "real viable options" to continue midsize and compact sedan production for the U.S. market. At the start of this year, he said the automaker would stop making the two light-selling models and look for a production partner.

Earlier this month, shares of FCA rose sharply after a report that Samsung Electronics Co Ltd (005930.KS: Quote) could buy all or part of Magneti Marelli.

Samsung has identified automotive components as a growth driver as sales in its existing businesses including smartphones have slowed. Acquiring a proven supplier such as Magneti Marelli could help it overcome the high entry barrier in an industry known for its conservatism and emphasis on track record.

Speaking to reporters at an expanded FCA stamping plant in Sterling Heights, Michigan, Marchionne declined to comment on whether FCA was in talks with South Korean tech company regarding its Magneti Marelli unit.

Marchionne reiterated that the inclusion of Magneti Marelli in FCA's portfolio was not mandatory over the long term and the carmaker would consider opportunities to leverage its expertise in electronics and automotive lighting, especially given the car industry's push into assisted and autonomous driving.   Continued...

FCA CEO Sergio Marchionne addresses the media during a celebration of the production launch of the all-new 2017 Chrysler Pacifica minivan at the FCA Windsor Assembly plant in Windsor, Ontario, May 6, 2016. REUTERS/Rebecca Cook