Giulia

Make
Alfa Romeo
Segment
Sedan

Something is going on over at FCA. Is there a possible Chinese suitor looking to buy Jeep? Is FCA working on a deal to merge with a Chinese carmaker? Both rumors have been in the news lately, but something else was also mentioned that wasn't getting nearly enough attention. It's also the most plausible move on FCA's part. Bloomberg reports that FCA is considering a plan to spin off both Alfa Romeo and Maserati in a move very similar with what it did with Ferrari in 2016. Why is FCA considering such a move?

N/A

Because the combined value of both luxury brands is estimated to be worth around $8.3 billion. In addition to this, FCA is also considering yet another spin off, its Magneti Marelli components operations, estimated at $5.8 billion. Nothing is set in stone just yet but Bloomberg did add that top FCA executives are progressing with such a plan. They're considering several options, including just separating only one brand. Who would benefit from these potential spin offs? For starters, the Agnelli family, which founded Fiat, as well as other shareholders. They would all profit. Goldman Sachs estimates that FCA's businesses are worth roughly 50 billion euros on their own, compared to FCA's current value of 24.5 billion euros.

In other words, there's potentially double profit to be made. FCA CEO Sergio Marchionne plans on sticking around until 2019, so obviously he'd like to leave on a high note. The Ferrari spin off is considered a huge success, so it makes sense to use this maneuver again with other premium Italian marques. As for that whole Jeep and China thing? Hopefully nothing will come of it.

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