Spinoffs in Fiat Chrysler CEO’s final plan
Fiat Chrysler Automobiles NV will evaluate whether to separate from some of its businesses in a strategy that Chief Executive Officer Sergio Marchionne will unveil in early 2018 as his last major project for the carmaker.
“The spinoff story is not over at Fiat Chrysler,” Marchionne told analysts Thursday during a conference call after the Italian-American carmaker reported a 16 percent increase in second-quarter earnings. “We have an obligation to purify that portfolio.” The CEO said he’ll present a five-year business plan through 2022 in the first half of next year. He reiterated that he’ll step down in 2019 and then have “zero involvement” in running the company.
Marchionne, 65, has dropped a yearslong search for a merger in favor of focusing on eliminating Fiat Chrysler’s debt by the end of next year. The manufacturer’s previous spinoffs to shareholders have included super-car maker Ferrari NV and the truck and tractor producer now called CNH Industrial NV. A possible candidate for a deal is auto-parts unit Magneti Marelli, and there’s no “industrial restriction” on eventually separating Italian luxury brands Alfa Romeo and, less likely, Maserati, the CEO said Thursday.