cars news 10: Rumors Suggest FCA Could Sell Off Maserati, Alfa Romeo to Trim Debt

New rumors suggest that Fiat Chrysler Automobiles could sell off two of its premium brands to help pay off a big chunk of its debt.

The speculation comes from a Forbes report that gathered thoughts and predictions from a number of industry analysts, most of which have a positive outlook on the future of FCA’s financial health. The report states that FCA’s debt totaled $7 billion at the end of the third quarter this year, but could be offset by a barrage of new products and bold moves, including the spin-off of Maserati and Alfa Romeo.

The report estimates Maserati could be sold for up to $4.8 billion. Analysts say the brand is more valuable than ever, especially now with the recent launch of the new Maserati Levante, which is seeing a relatively successful launch into the premium crossover segment. Meanwhile, Alfa Romeo recently unveiled its Stelvio crossover, which is expected to be the most popular model in the brand’s U.S. lineup. The report also suggests FCA subsidiary Magneti Marelli could be sold off, with an estimated value of $3.7 billion.

Earlier this year, FCA spun off Ferrari into its own company to help pay off debt. FCA CEO Sergio Marchionne has also unloaded unprofitable vehicles like the Chrysler 200 midsize sedan. Marchionne is expected to retire by the end of 2018 and has set out to ensure FCA is debt free by the time he steps down.

Source: Forbes