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Fiat Chrysler begins Magneti Marelli spinoff

MILAN — Fiat Chrysler has kicked off its planned spinoff of parts maker Magneti Marelli, which will be registered in the Netherlands and listed on the Milan stock exchange, a document outlining initial plans and seen by Reuters showed. The spinoff is part of a plan by FCA Chief Executive Sergio Marchionne to "purify" the Italian-American carmaker's portfolio and to unlock value at Magneti Marelli similar to his earlier spinoff of Ferrari. Analysts say Magneti Marelli could be worth between 3.6 billion and 5 billion euros ($4.2 billion to $5.8 billion). It sits within FCA's components unit alongside robotics specialist Comau and castings firm Teksid. FCA has created a separate entity called MM Srl, the document showed, into which it will fold Magneti Marelli's electronics and electro-mechanical operations related to racing motorbikes and racing cars, as well as 14 other holdings in various companies around the world, including Germany, Slovakia, Mexico and South Africa. MM will be incorporated into a Dutch holding company via a cross-border merger, it added. FCA declined to comment. The move follows a similar procedure adopted by FCA for the spinoff and listing of Ferrari as well as of trucks and tractor maker CNH Industrial, both registered in the Netherlands and listed in Milan. The Dutch holding company would allow Marchionne, known for his success in extracting shareholder value through this strategy, to introduce a loyalty share scheme to reward long-term investors through multiple voting rights, as was the case with CNH and Ferrari. That would tighten the grip of FCA's controlling shareholder Exor, the Agnelli family's investment holding company, on the parts maker. Magneti Marelli, which employs around 43,000 people and operates in 19 countries, is a diversified components supplier specialized in lighting, powertrain and electronics. The Magneti Marelli separation is expected to be completed by the end of this year or early 2019, FCA has said. FCA's advisers initially looked at a possible initial public offering for the business to raise cash to cut FCA's debt, but the Agnelli family — FCA's main shareholder — was put off by low industry valuations and did not want its stake in Magneti Marelli to be diluted, three sources close to the matter told Reuters in March. Magneti Marelli has often been touted as a takeover target, and FCA has fielded interest from various rivals and private equity firms over the years.

470,000 Jeep Liberty, Chrysler 200, and Dodge Avenger models recalled for restraint defect

Fiat Chrysler Automobiles said on Friday it is recalling 470,000 vehicles worldwide to replace a component that may inhibit deployment of the vehicles' active head restraints in the event of a crash. Around 414,000 of those vehicles were sold in the United States. Apparently, "a component common to the modules of certain vehicles may degrade after extensive vehicle use." The recall covers 2012 Jeep Liberty sport utility vehicles and 2012-13 Chrysler 200 and Dodge Avenger midsize cars. FCA says a warning light may alert owners to the problem. The Italian-American automaker said it is unaware of any injuries or accidents related to the recall. The U.S. National Highway Traffic Safety Administration opened an investigation into the issue in June. (Reporting by David Shepardson; Editing by Steve Orlofsky) Related Video:

Junkyard Gem: 1993 Plymouth Voyager SE AWD

Under Lee Iacocca's leadership, Chrysler printed bales of money by designing a small, front-wheel-drive van based on the versatile K platform. Chrysler didn't invent the minivan, of course, but those first 1984 Dodge Caravans and Plymouth Voyagers instantly put small vans square in the middle of the American vehicle mainstream (and began the long downward spiral of the station wagon here). For the 1991 model year, the second generation of Chrysler minivans hit our roads, and they were bigger, better-appointed and available with all-wheel-drive. Here's one of those early second-gen vans, found in a Denver-area boneyard a few months back. The 1984 Voyager was a genuine minivan, scaling in at a mere 2,984 pounds (about the same as the current Toyota Corolla). The wheelbases of the second-generation Voyager and Grand Voyager grew just a fraction of an inch longer, but the vans themselves got longer and heavier anyway. The curb weight of today's Junkyard Gem was 4,008 pounds. By 1993, minivans were under sales assault by a new crop of SUVs, particularly the Ford Explorer (which debuted for the 1991 model year) and Chrysler's own Jeep Grand Cherokee (which first appeared as a 1993 model). Chrysler's XJ Cherokee had been siphoning away minivan sales since Day One, having first hit Jeep showrooms at the same time as the first Voyagers and Caravans went on sale. Still, the 1993 Caravan/Grand Caravan, Voyager/Grand Voyager and Town & Country obliterated those trucks when it came to usable interior space, safety, ride comfort and fuel economy. Plymouth used the Voyager name on rebadged Dodge Sportsman full-size vans from the 1974 through 1983 model years, during which time Chrysler attempted to sell their big fuel-swilling passenger vans as sensible station wagons. The Grand Voyager had a wheelbase stretch of just over seven inches versus that of the regular Voyager; the SE was the lower of the two trim levels available for the AWD-equipped version in 1993. In 1993, base-grade front-wheel-drive Voyagers had 2.5-liter Chrysler four-cylinder engines as standard equipment, while front-wheel-drive Grand Voyagers got Mitsubishi 6G72 V6 engines. If you bought a new all-wheel-drive Grand Voyager that year, your van had this Chrysler 3.3-liter pushrod V6, rated at 150 horsepower and 180 pound-feet. Sadly, Chrysler stopped installing turbocharged 2.2 engines in their minivans after 1990.