Fiat is looking at potentially selling its auto-parts division Magneti Marelli and a stake in supercar maker Ferrari before the planned consolidation with Chrysler Group LLC. “We left Turin with the clear message that Fiat and Chrysler will become one company,” Morgan Stanley analyst Stuart Pearson wrote in a note to clients Monday.
A Ferrari IPO and Magneti sale are two ways that Marchionne is looking to raise cash for his group. A possible Volkswagen purchase of Alfa Romeo has also been talked about, and Marchionne said the only way that would be considered was if the price were very high.
Marchionne also plans to increase Fiat”s stake in Chrysler from the current 20% to 25% by the end of the first quarter of 2011, and to 35% by the end of the year. He also plans on taking the company public in the second half of 2011.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)