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Samsung might buy Magneti Marelli, FCA's parts supplier

Automotive manufacturing is quickly changing as companies like Google and Apple move into the sector with new products and services. It should be no surprise that other tech companies are making moves to grab a piece of the pie. According to Bloomberg, Korean tech conglomerate Samsung is in talks to purchase major automotive parts supplier Magneti Marelli from Fiat Chrysler Automobiles. Bloomberg reports that the deal could be worth more than $3 billion. It seems that Samsung is interested in Magneti Marelli's lighting, in-car entertainment, and telematics businesses, but a full purchase of the company isn't off the table. The move would be Samsung's largest-ever purchase outside of South Korea. FCA has already started to branch out and partner with tech firms. The automaker is working with Google to build an autonomous version of the new Pacifica minivan. They hope to have the first batch on the road by the end of the year. Magneti Marelli currently supplies everything from lighting and instrument clusters for passenger vehicles to high-end electronic components for Formula One and MotoGP teams. The company, founded in Italy in 1919, employs around 38,000 workers. Although it's currently owned by FCA, in the past Magneti Marelli has worked with companies like Ford and Microsoft. The purchase could help further diversify Samsung and reduce its dependence on consumer electronics like phones and televisions. Samsung is the world's largest supplier of memory chips and TVs, but the company has taken a hit lately as sales of its smartphones have faltered. In order to keep up with rivals like Apple, the company will need to venture into new markets. Perhaps Samsung's phone expertise would translate to improved vehicle infotainment systems. FCA, on the other hand, is on an aggressive five-year plan aimed at doubling net income. CEO Sergio Marchionne is attempting to eliminate the company's debt, and selling off a major subsidiary could greatly help. A recent attempt at a merger with General Motors failed and further hurt the company's finances. FCA's stock price rose in response to the rumors of the Magneti Marelli sale. Both Samsung and FCA have declined to comment on the move. Related Video: News Source: Bloomberg Technology Rumormill Chrysler Fiat Technology FCA Samsung magnetti marelli

PSA unions vote in favor of merger with Fiat Chrysler

PARIS — The majority of unions representing workers at Peugeot maker PSA are in favor of a planned $50 billion merger with Fiat Chrysler, PSA executives and union representatives said. However, the unions said that once the merger deal was signed, they would be seeking detailed information about the plans for the combined company. At a PSA works council meeting, all trade union representatives on the council voted to give a favorable opinion on the merger. "We will remain vigilant about the social impact and await a clearer and more detailed picture of the plan's implications for plants, volume, and how much work will be given to the foundries," said Franck Don, representative of the CFTC union. "But the project in the form it's been presented makes sense because the two groups complement each other, are in good financial health, and thanks to the new format will attain a critical size which is vital in the auto business today." The merger would help the firms pool resources to meet tough new emissions rules and investments in electric and self-driving vehicles, as well as counter a broader downturn in car markets. Securing support from Europe's powerful trade unions will be critical for the merged company, which will employ more than 400,000 staff and operate hundreds of factories worldwide. The deal has stirred concerns in Germany and Britain where plants making Opel and Vauxhall cars have seen jobs cut in recent year as part of a cost-cutting drive. UAW/Unions Chrysler Fiat Citroen Peugeot PSA

Chrysler Q3 profits surge to $611M but per-unit profits trouble

Chrysler Group has announced its third-quarter financial results a little later than its crosstown rivals at General Motors and Ford, but the company has reason to celebrate thanks to strong numbers across the board.
The biggest attention-grabber from the automaker is that its net income was up 32 percent in the third quarter to $611 million, compared to $464 million over the same period last year. Modified operating profit was also strong at $946 million - a 10 percent gain. Furthermore, net revenue grew as well to $20.7 billion - 18 percent higher Q3 2013.
Growing sales pushed the strong financials. Chrysler Group sold about 711,000 vehicles worldwide for the quarter, up 18 percent from a year ago. Things looked especially good in the US, where its market share grew to 12.3 percent, versus 11.2 percent in Q3 2013.