On the road during lockdown

Here's what motorists should know.

Meet Smokey Nagata

The man behind the legendary twin-turbo V12 Toyota Supra build.

Fiat sells auto parts unit to Japan's Calsonic for €6.2-billion

2018-10-22 10:56
Fiat Chrysler factory

Image: iStock

Fiat Chrysler said on Monday it was selling its Italian auto parts unit Magneti Marelli to Japan's Calsonic Kansei (CK) in a deal worth €6.2-billion.

It said the merged company will rank in the top 10 auto parts suppliers globally with annual sales of €15.2-billion.

Maintaining operations

There will be a multi-year supply agreement with Fiat Chrysler.

READ - Review: The Fullback is more than a Fiat-badged bakkie

This agreement will underscore "the combined entity's commitment to maintain Magnetti Marelli's operations in Italy and sustain its industrial footprint and employment levels," a joint statement said.

The deal should be closed in the first half of 2019, it added.CK is controlled by US investment house KKR. Fiat Chrysler said earlier this year that it planned to hive off its auto parts unit.

'Opportunity for growth'

Mike Manley, the new head of Fiat Chrysler, said the deal will boost growth at Magneti Marelli which will remain one of the group's most important business partners.

Unions welcomed the deal.

"It is a great opportunity for growth. The guarantee on all current employment in our country is important," said Fim-Cisl's Marco Bentivogli.

Magneti Marelli, founded in 1919, employs some 43 000 people and operates in 21 countries. Sales last year came to €8.2-billion.

Read more on:    fiat chrysler  |  milan  |  italy  |  industry news

There are new stories on the homepage. Click here to see them.