And has made its new owners very, very large indeed.
Fiat Chrysler Automotive, the US-Italian automotive conglomerate that is most associated with runaway cars, killer gear shifters, and relatively-outdated technology, has just managed to sell its Magneti Marelli auto-part supplier company for US$7.1-billion to Calsonic Kansei. With the acquisition, Kansei has now risen in the charts to take the crown as the seventh-largest independent car part supplier in the world.
This is the first major move by newly-appointed FCA boss Mike Manley, who took up the role in early July after the sudden and unexpected passing of Sergio Marchionne. As a result of the transaction, FCA now sits on a corporate revenue rated at US$17.5-billion, according to Reuters.
“This combination with Calsonic Kansei has emerged as an ideal opportunity to accelerate Magneti Marelli’s future growth.” — Mike Manley, Chief Executive, Fiat Chrysler Automobiles
Following the acquisition, Kansei will seek to rebrand as Magneti Marelli CK Holdings. After that, the company will seek to streamline its processes and “expand synergies” between the two firms, which will likely result in not-insignificant staff cuts from the Marelli side to make room for incoming Kansei executives.
The revenue that the Marelli sale has generated can now be used to meaningfully forward FCA’s ambitions to remain at par with the competition, as the automotive industry moves towards greater levels of electrification, autonomy, and advanced safety. FCA recently launched its first-ever mild-hybrid engine, debuting on the all-new Jeep Wrangler of all places, and it’s expected to be rolled out to other models (in addition to plug-in hybrid variants) in the near future.