|In 2016 Magneti Marelli sponsored Carlos Munoz at Detroit|
Fiat Chrysler Automobiles announced the spin-off of Magneti Marelli to a leading competitor.
In a deal worth $7.16b, FCA will sell the profitable business to Calsonic Kansei Corporation, one of the leading parts suppliers in Japan. The move will see the combined unit renamed Magneti Marelli CK Holdings, and stands to emerge as the seventh largest automotive component suppliers in the industry.
Together, Magneti Marelli CK is expected to turn over a combined $17.5b per year, operating some 200 facilities and R&D centers in Europe, Asia, and the Americas. Calsonic Kansei chief Beda Bolzenius will serve as CEO of the merged entity, with Magneti Marelli’s CEO Ermanno Ferrari joining the new board.
"Our industry has gone through fierce change in recent years and the phase to come will be even more dynamic," said Bolzenius. “It is exciting to form a strong platform for Calsonic Kansei and Magneti Marelli to work together and create a competitive automotive supplier which is extremely well placed among the global Top Ten. Together, we will benefit from complementary geographic footprints and product lines, while our respective customers will benefit from an increased investment in people, processes and innovative new products."