Samsung might buy Magneti Marelli, FCA’s parts supplier

Samsung might buy Magneti Marelli, FCA’s parts supplier

0 comments 📅04 November 2016, 21:24

Automotive manufacturing is swiftly changing as companies like Google and Apple move away into the sector with new products and services. It should be no take that other tech companies are making moves to catch a piece of the pie. According to Bloomberg, Korean tech conglomerate Samsung is in talks to procurement major automotive parts supplier Magneti Marelli from Fiat Chrysler Automobiles.

Bloomberg reports that the handle could be worth more than $3 billion. It seems that Samsung is interested in Magneti Marelli’s lighting, in-car pastime, and telematics businesses, but a full purchase of the throng isn’t off the table. The move would be Samsung’s largest-constantly purchase outside of South Korea.

FCA has already started to ramification out and partner with tech firms. The automaker is working with Google to build an autonomous side of the new Pacifica minivan. They hope to obtain the first batch on the road by the end of the year.

Magneti Marelli currently supplies the whole shebang from lighting and instrument clusters for rider vehicles to high-end electronic components for Rubric One and MotoGP teams. The company, founded in Italy in 1919, employs nearly 38,000 workers. Although it’s currently owned by FCA, in the since Magneti Marelli has worked with companies like Ford and Microsoft.

The get could help further diversify Samsung and cut down on its dependence on consumer electronics like phones and televisions. Samsung is the humankind’s largest supplier of memory chips and TVs, but the following has taken a hit lately as sales of its smartphones be suffering with faltered. In order to keep up with rivals like Apple, the T will need to venture into new markets. Dialect mayhap Samsung’s phone expertise would transmogrify to improved vehicle infotainment systems.

FCA, on the other help, is on an aggressive five-year plan aimed at doubling net revenues. CEO Sergio Marchionne is attempting to eliminate the companions’s debt, and selling off a major subsidiary could greatly serve. A recent attempt at a merger with Accepted Motors failed and further hurt the fellowship’s finances. FCA’s stock price rose in return to the rumors of the Magneti Marelli sale.

Both Samsung and FCA from declined to comment on the move.

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