Fiat Chrysler Automobiles, a Fiat Chrysler Automobiles company, said it will split its Magneti Marelli parts business by the end of this year or early next year.
FCA stated in a statement on April 5: “This split will bring value to FCA shareholders, and at the same time provide the necessary operational flexibility for Marelli’s strategic growth in the coming years.”
Through its automotive lighting joint venture, Marelli has produced more than 24 million headlights in 2016.
Marelli has a broad portfolio of products. The automotive lighting joint venture's lighting, instrument clusters, interior trims (including dashboards), and major exterior systems (such as bumpers and fenders) use plastic.
In 2016, the company said it produced more than 21 million headlights, 29 million taillights and 4.7 million instrument clusters.
In January of this year, at the North American International Auto Show held in Detroit, Marelli demonstrated its "Smart Corner" concept, integrating cameras, sensors, radar and lidar into headlights and taillights.
FCA CEO Sergio Marchionne said that the split plan will allow automakers to focus on their core product portfolio and consolidate their capital position. FCA expects to sell or split suppliers within the last two years.
Marchionne stated in the statement: "The split between the FCA and Marelli is a key part of the 2018-2022 business plan and will be released in June."
FCA said that the split plan needs to be approved by the regulatory authorities and approved by the Fiat Board of Directors.
According to FCA, Marelli is expected to be listed on the Milan Stock Exchange.