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FCA Might Shed Luxury Brands, Alfa Romeo and Maserati Moving Out Parents' House

It seems like Sergio Marchionne's Fiat Chrysler Automobiles is doing its spring cleaning a little too late (or too early, depending on which side of the glass you see) as it looks to find ways to make the company more desirable for partnerships.
2018 Maserati GranTurismo 9 photos
Photo: Maserati
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The idea is that the two Italian more upscale brands don't sit well with the rest of the consortium's business which is focused on more down-to-earth vehicles. Spinning off the Alfa Romeo and Maserati brands would free FCA of any ties with premium or luxury brands after Ferrari suffered the same fate last year.

The combined value of the two iconic Italian names is estimated at €7 billion (around $8.3 billion), while FCA is also considering having the Magneti Marelli components business join the banished brands for an extra €5 billion ($5.9 billion).

The move would leave FCA with a short list of marks that is mostly comprised of American names: Abarth, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Ram Trucks, and SRT. A quick glance reveals that Jeep is by far the most valuable of the nine left, having been estimated at over $20 billion by Morgan Stanley analysts.

Recent news of Chinese interest in the American off-road brand has shown that FCA isn't interested at all in selling Jeep, even though, to be completely fair, there was no formal offer made by Great Wall Motors either.

FCA management is reportedly discussing several options, including keeping the two carmakers and offloading just one or more component manufacturers like Magneti Marelli, Teksid or Comau. Inside voices talking to Automotive News said that a decision is yet to be made, but it should come until early 2018.

The new market developments (electrification, self-driving, and shared-driving) have caught FCA on the back foot, forcing it to take action and look for ways to entice other companies (including competitors) to work together on the development of various technologies. Getting rid of some of its debt might prove to be the right call.
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About the author: Vlad Mitrache
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"Boy meets car, boy loves car, boy gets journalism degree and starts job writing and editing at a car magazine" - 5/5. (Vlad Mitrache if he was a movie)
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