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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.

Ferrari presents new F1 car to challenge Mercedes

MARANELLO, Italy — Ferrari unveiled its new Formula One car on Friday, one that it hopes can finally end its title drought. Team principal Mattia Binotto and drivers Sebastian Vettel and Charles Leclerc were on stage for the presentation of the car, which has been named SF90 to commemorate the Italian manufacturer's 90th anniversary in 2019. They were joined by Ferrari chairman John Elkann and CEO Louis Camilleri. "The car embodies the latest state-of-the-art technology, reflects the new regulations for the coming season and is the fruit of the combined enormous work and talent of everyone in the Scuderia," Camilleri said. The new matte livery radiates the classic Ferrari red, with splashes of black and hardly any white. "I'm really excited, and I can't wait to get in," Vettel said. "I'm looking forward to this year. I think the team is on the right path, and hopefully we can continue improving." Vettel won the opening two races of the 2018 season and took pole position in three of the first four but Ferrari's performance waned as the year went on, enabling Mercedes to win a fifth straight drivers' title with Lewis Hamilton. Ferrari hasn't won a title since taking the 2008 constructors' championship, while Kimi Raikkonen claimed the team's last driver's title back in 2007. "Last season was our best in the last 10 years, yet we fell short of our objectives," Camilleri said. "Such a setback is never easy to swallow, but I assure you we look ahead with strong commitment and determination." It is Vettel's fifth season with Ferrari but Leclerc's first after replacing Raikkonen. "I'm extremely excited to start this new adventure," Leclerc said. "It's a dream since I was a child. It's a very emotional day for me." Binotto has also been promoted from chief technical officer, taking over from Maurizio Arrivabene. The season opens on March 17 at the Australian Grand Prix in Melbourne. Related Video: Featured Gallery Ferrari SF90 2019 Formula One car Motorsports Ferrari Racing Vehicles F1 Sebastian Vettel John Elkann

Will Ford's SUV blitz include the Bronco?

Ford announced this week it will add four sport-utility vehicles in the next four years, an ambitious bet on a segment the industry once shunned. This led to wild speculation about what form these utes will take. Here's what we know: They will be new nameplates, and Ford is thinking globally. That means at least one might not be a product with US intent. They will also be in segments where the company does not currently compete, Ford said. The Blue Oval isn't specifying exactly what's it's doing, so here are some of our theories. We think one will be called the Bronco, which is great news for enthusiasts. We hope it follows the Mustang playbook with some heritage styling, but a thoroughly modern execution. Ford needs an off-road Jeep Wrangler-fighter. Fuel prices are low and it's been 22 years since the infamous O.J. Simpson white Bronco chase. This is the best chance Ford will ever have to bring back this iconic name. Our man on the ground at the Chicago Auto show, Sebastian Blanco, reported that Ford sales and marketing vice president Mark LaNeve said a "mini utility" will also be one of the utes. This could be primarily an overseas play. We've also seen lots of spy shots of the EcoSport, a small crossover that Ford sells in India and other overseas markets, being tested on American roads. That is an existing nameplate. Maybe Ford adds a small ute related to the EcoSport in the United States, but calls it something else. We think Lincoln gets a three-row SUV out of the deal. It could slot between the MKX, which was new last year, and the Navigator. Lincoln is leaving money on the table by not being in this segment. The platform could be used for a Ford at some point, too. The Blue Oval brand does actually have a tweener three-row vehicle, the Flex, but this chassis might underpin a replacement. Or maybe Ford makes one of these a hybrid. The company laid out ambitious plans in December to ramp up its electrification strategy, something that could mean a dedicated hybrid SUV (Kia unveiled one of those right after LaNeve's speech in Chicago). It's also possible hybrid technology will be integrated into this new portfolio. The Escape used to have a hybrid sibling. Whatever form they ultimately take, Ford is betting heavily on SUVs. The company thinks they are what Baby Boomers and Millenials want and expects the segment will continue to grow. It's important to note: this will be a diversified strategy.