Fiat Chrysler Automobiles is reportedly in talks with Samsung over the future of its automotive components business Magneti Marelli.
FCA chairman John Elkann confirmed ongoing talks, but said that there is ‘nothing formal’, according to a Reuters report.
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Magneti Marelli is attracting interest because it could have an important role in car development in the coming decades, Elkann said. He also told journalists that FCA is keen to strengthen the business.
FCA CEO Sergio Marchionne has said Magneti Marelli’s future would be outside the Fiat group in the long-run. Samsung is thought to be interested in the company as a way into the automotive business in high-growth technologies that would complement its consumer electronics business.
According to recent reports, Samsung is particularly interested in Magneti Marelli’s lighting, in-car entertainment and telematics business.
FCA is also said to be talking to other parties about the possible sale of Magneti Marelli, as it looks to improve its financial position. FCA is understood to be looking at gaining as much as EUR3bn from a potential sale of Marelli. Its most recent cash raising activity was spinning off Ferrari.
