Fiat Chrysler could be forced to sell Alfa and Maserati
Stock market tips debt and costly recall could force Italian car making giant to sell off assetsAlfa Romeo, Maserati and automotive electronics supplier Magneti Marelli all face an uncertain 2017 following a new report that Fiat Chrysler Automobiles (FCA) could be forced to sell all three companies.
According a new report on Forbes.com investors like Berenberg Bank have already predicted FCA's boss, Sergio Marchionne, will sell its most prized assets (after Jeep) to protect the car giant's shareholder value in the wake of the recent investigation into the Dodge Ram and SUV roll away issue when left in "park".
If a fault is found more than a million vehicles are thought to be involved.
FCA's huge debt, that's claimed to be nearly US$7 billion (A$9.7 billion) at the end of the third quarter of 2016, could also force Marchionne to cast off Alfa and Maserati.
Despite this debt and potential costly recall in the pipeline, according to Forbes it's not all bad news. FCA posted a third quarter US$634 million (A$855 million) profit compared to the US$352 million (A$488 million) loss in the third quarter of 2015.
Maserati, meanwhile, made FCA US$108 million in 2016 - impressive considering last year it only managed to bring in US$12.6 million (A$17.5 million) in the third quarter the year before.
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
