Fiat Chrysler (FCA) appears to be pressing ahead with a plan to separate its parts unit, Magneti Marelli.
FCA CEO Sergio Marchionne said that FCA will push ahead with a plan to separate auto parts unit Magneti Marelli next year, according to Reuters. He reportedly added that spinning off and listing the unit would be the best option to unlock value.
The Reuters report said he was speaking on the sidelines of a conference in Italy, but the remarks echo previous remarks suggesting that FCA would consider selling off brands or other parts of its business in order to raise capital that could be used to make its core operations more competitive and lower the group’s high level of debt.
However, Reuters also reported that Marchionne remarked that it was premature to spin off the Alfa Romeo and Maserati brands.
Marchionne reportedly added the project may not even happen during the next business plan, which will run from 2018 to 2022.
In August, it was reported that FCA is considering options including a plan to spin off the Maserati and Alfa Romeo brands as well as components operations.
Sergio Marchionne is reportedly working on a final five-year business plan before he leaves FCA in 2019. He has confirmed that FCA would consider selling off parts of the business as it looks to streamline operations and eliminate over EUR4bn of outstanding debt.