FCA’s talks with Samsung Electronics have stalled with the Korean company now fully focused on resolving their Galaxy Note 7 crisis.
Furthermore, the two companies have yet to agree on the valuation of FCA’s car-parts unit, Magneti Marelli, according to people familiar with the matter.
Since Samsung’s priority now is to manage their Note 7 issues rather than pursuing other deals, it’s unlikely that an according between the Korean tech giant and FCA can be signed before the end of the year.
Still, despite Samsung cutting their Q3 operating profit outlook by $2.3 billion after ending production of its fire-prone Galaxy Note 7 smartphone, the two companies remain interested in exploring a partnership, according to Autonews.
Back in August, FCA CEO Sergio Marchionne pegged Samsung as a “potential strategic partner”, with the South Korean manufacturer particularly interested in Marelli’s lighting, in-car entertainment and telematics business.
For FCA, selling Magnetic Marelli (or a part of it) would help them reduce debt while moving closer to turning 5.5 billion euros of net industrial debt into a “cash pile of at least 4 billion euros.”
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