Spinoffs in Fiat Chrysler CEO’s fi­nal plan

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM -

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.

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