Fiat Chrysler considers selling Comau unit for up to $2.3 billion

November 26, 2018 14:50 CET

Fiat Chrysler Automobiles is considering options for its robotics arm Comau, including a potential sale at a value of 1.5 billion euros to 2 billion euros ($1.7 billion to $2.3 billion), people familiar with the matter said.

The strategic review of the unit is at an early stage and no final decisions have been made, the people said, asking not to be identified because the deliberations are private. A sale process could start early next year, the people said. The business, which makes automated manufacturing systems and industrial robots, could attract bidders from China, another person said.

A sale early next year could be the second major deal under new CEO Mike Manley, who took over just days before the death of his predecessor Sergio Marchionne in July. The company in August agreed to sell its supplier unit Magneti Marelli for 6.2 billion euros.

A Fiat spokesman declined to comment.

Sales of parts operations and other non-core businesses will allow Fiat to focus its resources on building and selling cars at a time when trade tensions, falling car sales in China and clean-air regulations are putting pressure on automakers and their suppliers.

Daimler issued its second consecutive profit warning in October and automotive supplier Continental said this month that any acceleration in global vehicle production declines would put its revenue forecast at risk. Volvo Cars in September delayed plans for a share sale, saying the timing is “not optimal,” and Aston Martin shares have slumped about 25 percent since its initial public offering.

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