Fiat Chrysler is considering selling off its Alfa Romeo and Maserati brands as it continues to shop its business around to other automakers.
According to Automotive News Europe, the two brands could be worth as much as $8.3 billion together. Relieving itself of its two luxury brands and focusing solely on its mass market Jeep, Dodge and Ram brands might make FCA more attractive to an outside buyer. The plan would also see FCA sell off its Magnetti Marelli components business, which has been valued at about 5 billion euros by industry analysts.
This week it was revealed that China’s Great Wall Motor Co. was looking at purchasing FCA’s Jeep SUV brand, but the automaker acknowledged there were “big uncertainties” about moving forward with the sale. FCA may be hesitant to spin off Jeep as it’s seen as the most desirable part of the automaker’s entire business. Morgan Stanley analysts estimated Jeep could be worth more than $20 billion, which is more than the estimated valuation for all of FCA.
Top brass at FCA is believed to be mulling over the matter currently, with a final decision expected to be made in early 2018. FCA declined to comment on the matter when sent a request by AN.
[Source: Automotive News Europe]