Fiat Chrysler is negotiating with Samsung Electronics and others to strengthen strategic cooperation in auto parts business

Fiat ChryslerCarThe chairman of the company, John Elkann, confirmed that the company is negotiating with a number of potential partners such as Samsung Electronics to strengthen the automotive industry.PartsBusiness Magneti Marelli.

On August 29, Elkann and Samsung Vice Chairman Lee Jae Yong (Lee Jae Yong) met in Turin, and the two attended a board meeting of Fiat’s controlling shareholder Exor SpA. When asked if the two talked about Magneti Marelli, the auto parts business, Elkan said: "We discussed Magneti Marelli and other topics. Samsung has important interests in the insurance business. Since we own the reinsurance company PartnerRe, both parties have Many potential business cooperation opportunities." Elkan also serves as Chairman of Exor. Following its Ferrari and Case New Holland Industries, Exor shareholders also approved the relocation of the company's headquarters to the Netherlands. Lee Jae-yong is a director of Exor. A person familiar with the matter said last month that Samsung is in in-depth negotiations to acquire some or all of Magneti Marelli's business. Samsung is particularly interested in Magneti Marelli's lighting, in-car entertainment and in-vehicle information systems. Fiat CEO Sergio Marchionne (Sergio Marchionne) said on August 27 that Samsung is a "potential strategic partner." Elkan said that as parts and components play an important role in the development of automobiles, the demand for electronics is increasing. The company is negotiating with a number of potential partners to strengthen Magneti Marelli's business in the future. Marchionne abandoned plans to seek mergers with other automakers last year and focused more on technology providers. In March of this year, he proposed to assemble cars for Apple, and in May announced cooperation with Google on unmanned vehicles. In addition to cooperation negotiations with Uber and Amazon, Fiat also targeted Samsung. Marchionne developed a five-year strategy for Fiat. During this time, Fiat will not only get rid of debt, but also more than double its net profit, with cash reserves of at least 4 billion euros (about 4.5 billion US dollars). Analysts believe that the sale of part of Marelli's business will help Marchionne complete the most challenging part of this strategy.