FCA Ponders Spinning Off Maserati, Alfa Romeo, Parts Units

Fiat Chrysler Automobiles NV is studying the idea of selling off its Alfa Romeo, Maserati and component operations to make the company more attractive to a would-be buyer, sources tell Bloomberg News.

Analysts estimate Alfa and Maserati could be worth a combined €7 billion ($8.3 billion). FCA’s parts businesses—Comau, Magneti Marelli and Teksid—could fetch a combined €5 billion ($5.9 billion). Bloomberg says several scenarios are under consideration and no decisions have been made.

Shedding Alfa and Maserati would re-cast FCA as a mass-market vehicle manufacturer, with a lineup anchored by its highly valued Jeep SUV brand. The plan also would help the company pay down debt and hike shareholder value.

Goldman Sachs has estimated that FCA’s current businesses are worth some €50 billion ($59 billion)—twice the company’s actual enterprise value. Bloomberg points out that the carmaker’s shares are trading at 4.6 times estimated 12-month earnings, only 60% of the industry average.

The news service notes that breaking up FCA also would fit the goal of the company’s controlling Agnelli family to diversify its portfolio into less volatile industries.