The automaker announced Monday that its Magneti Marelli division was bought by the Japanese company Calsonic Kansei for 6.2 billion euros ($ 7.2 billion) under an agreement that will create the 39, one of the largest automotive parts suppliers in the world.
Fiat Chrysler (FCA) CEO Mike Manley, who succeeded Sergio Marchionne in July, said the automaker had considered "a whole range of options" for Magneti Marelli before deciding to sell it to the company. Japanese capital company KKR.
The deal comes at a time when the auto industry is being disrupted by the rise of electric cars and the development of autonomous driving technology. Leading players such as GM (GM) and Toyota (TM) partner with technology companies to try to adapt to a changing landscape.
"Our industry has undergone profound changes in recent years and the next phase will be even more dynamic," said Beda Bolzenius, CEO of Calsonic Kansei.
The combined company will have an annual turnover of 15.2 billion euros ($ 17.5 billion) and nearly 200 facilities and research centers around the world, Fiat Chrysler said in its statement. Its closure is scheduled for the first half of next year.
The sale will allow Manley to focus more on the larger challenges facing Fiat Chrysler, including the need to capture a larger share of the Chinese market, the largest in the world, and catch up with rivals in the development of electric vehicles. and autonomous.
The two auto parts companies that merge have a history dating back several decades.
Magneti Marelli was founded in Milan 99 years ago and was bought by Fiat in 1967. Calsonic Kansei started 80 years ago to manufacture automotive radiators for Nissan (NSANY), its largest shareholder up to 39, at its acquisition by KKR last year.
Parts suppliers specialize in some of the same product areas, including electronics and exhaust systems.
