These two companies could have a combined value of $8.3 billion.
Fiat-Chrysler is still being bought by Chinese investors. The automaker is looking at a variety of options to boost its overall valuation. One option is to spin off Maserati, and Alfa Romeo like it did Ferrari in 2016.
Automotive News Europe reports that the move would allow FCA more focus on its mass-market vehicles, such as Jeep, Dodge and Ram. Although China’s Great Wall Motor Co. has expressed interest in Jeep, the company says there are still “big uncertainties.”
Maserati and Alfa Romeo together could be worth up to $8.3B (7 billion Euros), while Magneti marelli and other assets are worth up to $5.9B (5 billion euros). Goldman Sachs estimates FCA’s total business assets to be worth 50 billion euros.
If Sergio Marchionne, CEO, decides to pursue the spinoff, Maserati or Alfa Romeo would be the third and fourth brands, respectively, to do so during his tenure. This follows CNH Industrial NV in 2011 and Ferrari 2016. CNH and Ferrari together have a market worth $57 billion compared to $6 billion in 2004.
FCA will for now continue to evaluate all options. As the company already partners with Chinese automakers such as GAC to develop vehicles such as the Fiat Viaggio and Jeep Cherokee and other models, a Chinese takeover seems like a viable option. AutoPacific analyst David Sullivan said that China would be the only country with the resources and reason to buy Fiat Chrysler Automobiles.