FCA To Sell Parts arm Magneti Marelli to Calsonic Kansei ___ Automotive Car TV/Automotive News TV


beeping old vehicles around welcome to
Monday’s newscast hope you enjoy the weekend that story coming up but first
your top news stories will begin this morning with Fiat Chrysler automobiles
the company has agreed to sell its car parts unit magneti marelli to Japanese
auto supplier Kel sonic can say for 7.1 billion dollars Kel sonic ensei is owned
by US private equity firm KKR the transaction marks their first major deal
for FCA under new CEO mike manly the new company
will be called magneti marelli ck holdings FCA says it will enter into a
multi-year supply agreement with its former unit the move will preserve
Morelli’s presence in Italy and maintain employment levels the deal creates an
auto parts maker with more than 17 billion dollars in annual revenue and
roughly 65,000 workers globally the sale is expected to close in the first half
of next year outtie on Sunday saying its first
electric vehicle the e-tron crossover will hit showrooms four weeks later than
planned that’s because of a software development issue the company says it
needs new regulatory clearance for a piece of software that was modified
during the development process the e-tron delays were first reported by
German newspaper Bild AM Sonntag it cited sources close to the company
the paper also said OD is negotiating with South Korean battery supplier LG
Chem which wants to boost prices because of high demand the e-tron was originally
expected in US showrooms in mid 2019 German Chancellor Angela Merkel is
looking to amend the country’s anti-pollution laws bloomberg reports
Merkel wants to avoid driving bans for diesel vehicles in cities where nitrogen
oxide emissions are just above the limit Merkel telling reporters on Sunday quote
we believe as a rule that driving bans are
disproportionate when the limits are exceeded by a slight amount Germany’s
top administrative judges raised the possibility of banning diesel vehicles
from city centers in a February ruling a German environmental group is accusing
Merkel of trying to shield automakers from such bans and Cox automotive is
planning more job cuts the new layoffs come as Cox digests several acquisitions
made over the past decade the company is also reorganizing business units to
pursue new markets such as ride-hailing a cox source says the new cuts would
total quote several hundred a company spokesman declined to say how many jobs
would be cut but said the reductions would take place across the business in
the summer of 2017 Cox idled 950 employees about 3% of its full-time
staff Cox Automotive employs more than 34,000 people across several brands such
as Auto Trader Kelly Blue Book and Manheim from the Lincoln MKT to the
Dodge Grand Caravan these are just some of the outdated vehicles that are
hanging around as their shinier successors hit the market
in today’s print issue of automotive news we take a look at why automakers
continue to build old models among the reasons holdovers help keep an entry
price available for buyers and those vehicles make money take for example the
nine-year-old MKT its successor the aviator will hit showrooms next year but
Lincoln has not set a date to end production of the slow selling MKT the
value therefore Lincoln’s parent Ford it can take advantage of selling the MKT to
fleet customers while focusing its aviator on more profitable retail sales
plus it keeps the company from discounting the new model on rental Lots
to be sure the decision to keep an old vehicle in production is a rare practice
carla bellows CEO of the Center for Automotive Research says the move must
be vetted to make sure it won’t damage a brand’s lineup and that wraps up today’s
newscast we’ll see you back here tomorrow morning take care