FCA Now Considers Spinning Off Alfa Romeo And Maserati So They Are More Attractive To Chinese Buyers

FCA Now Considers Spinning Off Alfa Romeo And Maserati So They Are More Attractive To Chinese Buyers
Fiat Chrysler Automobiles is considering options including a plan to spin off the upscale Maserati and Alfa Romeo brands as well as its components operations, people familiar with the discussions told Bloomberg.

The moves would focus the automaker on mass-market cars to make Fiat Chrysler more attractive for a potential combination with a competitor, said the people who asked not to be identified because the deliberations are private.

The luxury-car operations could be worth as much as 7 billion euros ($8.3 billion), while Magneti Marelli and other parts businesses are valued at up to 5 billion euros, analysts estimate.


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skytopskytop - 8/23/2017 3:22:52 PM
+4 Boost
Why doesn't FCA sell them off to hussein obamma for $1.?


CANADIANCOMMENTSCANADIANCOMMENTS - 8/23/2017 6:47:40 PM
0 Boost
They should get together with Ferrari and share tech, platforms, production plants and R+D. Ferrari makes super sports cars, Alfa Romeo makes sport sedans and SUV's and Maserati makes luxury sedans and SUV's.


valhallakeyvalhallakey - 8/24/2017 11:58:12 AM
-1 Boost
I agree with that strategy, although Matt may be right. The investment required to develop new platforms, ensure long term reliability may be too much, On the other hand I see a ton of consolidation going on at the major component level of car manufacturing,. How many car companies make their own transmissions these days? Seats? Lighting? Even wiring harnesses. That could and should help Alfa/Mazer with reliability issues fairly quickly.


CANADIANCOMMENTSCANADIANCOMMENTS - 8/24/2017 12:52:31 PM
+1 Boost
Thanks Valhallakey. I think there is merit to my suggestion for the reasons you state. If buying looms, transmissions and other parts, better to do it as a group. As well this group would contain a parts firm too, Magneti Marelli. Better to buy anything as a larger group. VW is big on platform sharing, this group could do the same. I will disagree with MDarringer in that I do believe there is a market for both Maserati and Alfa as they are storied brands with real heritage. You can't buy or fake that. Ferrari has money and likely always will. It could work, but patience is required.


carloslassitercarloslassiter - 8/23/2017 8:52:20 PM
-6 Boost
"Why doesn't FCA sell them off to hussein obamma for $1.?"

I sense a meme here: Blames Obama for the bailout; supports Trump's efforts to do the exact same thing for the coal industry.


MDarringerMDarringer - 8/23/2017 10:24:15 PM
+3 Boost
Literally NO ONE will want Maserati or Alfa-Romeo. Even if their products were not outdated (Maserati using the ancient LX platform) or quality nightmares (Alfa Romeo), billions of dollars would need to be invested on a constant basis for more than a decade for an outside chance of those brands being taken seriously.

Jeep and Ram are the prize. Chrysler or Dodge could much more easily be revived with the simple expedient of badging Chinese cars as Chryslers.


BimmersNmeBimmersNme - 8/23/2017 11:56:03 PM
+1 Boost
Agree with you on that, MDarringer


malba2367malba2367 - 8/24/2017 10:29:08 AM
+1 Boost
They should split Fiat off and keep Maserati/Alfa with Chrysler. Someone with deep pockets and the willingness to spend some money can restore those brands. Platforms and engines can be shared between Chrysler/dodge and Alfa/Maserati the way VW does throughout its brands.
Fiat is the real reason for the lukewarm interest in FCA, Fiat is saddled with inefficient factories/labor costs and unsustainable pension costs at its current volume. Even in Europe (besides the 500) the Fiat lineup is a joke...completely non competitive with VW, Ford. PSA etc.


MDarringerMDarringer - 8/26/2017 4:46:01 PM
+1 Boost
Ironically, this could work. Exit Mitsubishi from the USA. New Mitsubishis could be Chryslers in the USA--not that anyone's even had that idea before--Renault would have Jeep back and Nissan could kill the horrible Titan because they'd have the Ram.


GermanNutGermanNut - 8/26/2017 3:14:13 PM
+1 Boost
Alfa Romeo and Maserati can be spun off but they need a higher quality/ more reliable name with them. Alfa Romeo and Maserati together as a stand-alone company will be a nightmare for investors. The quality problems would become even greater than they are now.

I think a tie-up with Ferrari would go a long way at making the combined entity a more viable option from an investor perspective.

This would leave FCA with just Jeep, Chrysler and Dodge which is essentially an American-focused entity with moderate prices. FCA would become much more attractive to Great Wall in this condition due to Great Wall's expertise with SUVs and FCA then being focused primarily on SUVs with just Jeep, Chrysler and Dodge.


MDarringerMDarringer - 8/26/2017 4:43:22 PM
+1 Boost
They need tens of billions of dollars and home-run product after home-run product in order to have a chance to expand.


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