Fiat Chrysler explores sale of auto parts unit Magneti Marelli for $3.3 bn

Fiat Chrysler Automobiles (FCA) is weighing plans of selling its auto parts unit Magneti Marelli after receiving interest from potential buyers, Reuters yesterday reported, citing sources familiar with the matter.

At least two US-based private equity firms are planning to team up with industry players and submit joint bids for Magneti Marelli, the report said.   

FCA, the world's seventh-largest carmaker, had last month rejected a €2.5 billion ($2.7 billion) offer for Magnetti Marelli, from a group, including a US buyout fund as FCA would not agree to sell for less than €3 billion, the report added.

FCA is currently planning a floatation of of sports car maker Ferrari, expected after mid-October,

With 89 production units, 12 R&D centres and 26 application centres in 19 countries, about 38,000 employees and a turnover of €6.5 billion in 2014, Magneti Marelli supplies to all leading automobile and two-wheeler makers in Europe, North and South America and the Far East.

Its business areas include electronic systems, lighting, powertrain, suspension systems and shock absorbers, exhaust systems, aftermarket parts and services, plastic components and modules and motorsport.

Magneti Marelli was founded in 1919 as a joint-venture between Fiat and Ercole Marelli, and was named Fabbrica Italiana Magneti Marelli.