Samsung’s woes with a fire-prone smartphone – ultimately axed from production and sale earlier this week – have halted talks over the future of Fiat Chrysler Automobiles component unit Magneti Marelli, reports said.
Samsung is focused on dealing with the Galaxy Note 7 smartphone crisis, anonymous sources told Bloomberg.
The automaker and technology products company have yet to agree the valuation of Magneti Marelli and the structure of any deal, such as a joint venture.
Talks have not ended but a contract is unlikely to be signed by the end of the year, as originally planned, because Samsung is in crisis-control rather than large acquisition mode, sources said, adding they are still interested in a partnership.
Fiat declined to comment to Bloomberg while Samsung said it doesn’t comment on rumours or speculation.
Sources had told Bloomberg in August Samsung was in advanced talks to buy some or all of Marelli and was particularly interested in the FCA affiliate’s lighting, in-car entertainment and telematics business. Marchionne said later Samsung is a “potential strategic partner” while FCA chairman John Elkann confirmed in September Fiat was “holding talks to strengthen Magneti Marelli in the future” because “components are important in the evolution of cars and there is increasing need for electronics.”
Talks with “several” other potential partners were also ongoing.