FCA has completed the sale of its automotive components business, Magneti Marelli to CK Holdings, the holding company of Japanese supplier, Calsonic Kansei Corporation for US$5.8bn.

“We thank Magneti Marelli’s employees for their dedication to providing innovative products while supporting FCA business objectives,” said FCA, CEO Mike Manley.

“FCA remains committed to Magneti Marelli, with the new company continuing as a key supplier, and I am confident this transaction secures a strong future for their employees and other stakeholders.

“This sale also recognises the full strategic value of Magneti Marelli, improving our financial position, delivering value to our shareholders and allowing us to enhance our focus on our core product portfolio.”

FCA also announced its board of directors approved an extraordinary cash distribution to the holders of FCA common shares of EUR1.30 per share, corresponding to a total distribution of around EUR2bn from net proceeds of the transaction.