Marelli Europe S.p.A. (Formerly Magneti Marelli S.p.A.) Business Report FY ended Dec. 2018
Financial Overview
-In the fiscal year ended December 31, 2018, the Company’s sales totaled approximately EUR 7.5 billion, a decrease of 13.8% from the previous year’s results of EUR 8.7 billion.
FCA Sale of Company to CK Holdings
-The Detroit Free Press reported that private equity firm KKR is in talks to purchase the Company. The potential acquisition would mark a change of direction for FCA, which had been working on a spin-off of the Company with its 43,000 employees. Unnamed sources said that KKR is expected to acquire the Company through Japan-based Calsonic Kansei Corp., creating a supplier that could cut costs by eliminating overlapping operations and other synergies. (Detroit Free Press article on August 22, 2018)
-Fiat Chrysler Automobiles is seeking more than EUR 6 billion for the sale of the Company in exclusive sale talks with a supplier owned by KKR & Co., according to recent reports. KKR aims to pay EUR 5 billion because conditions for Fiat’s alternative plan of spinning off the division have deteriorated, according to those familiar with the talks. KKR would merge the Company with its Japanese parts maker Calsonic Kansei, which is leading the talks. The difference in valuation between FCA and KKR has led to two extensions on the original August deadline to complete the discussions, and may yet derail the talks. (From multiple sources on September 12, 2018)
-FCA Group announced that it has entered into a definitive agreement (the “Transaction”) to sell the Company to CK Holdings Co., Ltd., a holding company of Calsonic Kansei Corporation. Following the closing of the Transaction, CK Holdings will be renamed as Magneti Marelli CK Holdings. The agreement represents a transaction value of EUR 6.2 billion. The Transaction is expected to close in the first half of 2019 and is subject to regulatory approvals and other customary closing conditions. The Transaction represents a unique opportunity to combine two successful businesses to create the world's seventh largest global independent automotive components supplier, with combined revenues of EUR 15.2 billion. The new entity will operate out of nearly 200 facilities and R&D centers across Europe, Japan, the Americas, and Asia. (From a press release on October 22, 2018)
Acquisitions
-The Company announced the signing of an agreement for the acquisition of 100% of SmartMeUp, a French startup operating in the field of perception software aimed at autonomous driving, smart cities and safety technology applications. Closing is expected to take place in the fourth quarter of 2018. SmartMeUp develops software for processing sensor's signals, detecting and recognizing objects around the vehicle and enabling 3D environment building and object movement tracking. This type of software will be a key enabler for autonomous vehicles. SmartMeUp also focuses on developing software for Driver Monitoring, that is included in the NCAP requirements roadmap and expected to be mandatory by 2020. (From a press release on August 1, 2018)
Contracts
| Company | Model | Parts Supplied |
| BMW | X4 | Full-LED adaptive headlights |
| 2 Series Gran Tourer | Full-LED adaptive headlights | |
| Citroen | Berlingo | 8" touchscreen infotainment display |
| Jeep | Wrangler | Full-LED headlights, Instrument clusters with either 3.5" TFT display or configurable 7" HD display |
| Mercedes-Benz | S-Class Maybach | Full-LED matrix front lighting system with multibeam technology, LED rearlights |
| Peugeot | 508 | Instrument clusters, 8" touchscreen infotainment display |
| Skoda | Fabia | LED front lighting system |
| Kodiaq L&K | Motorized throttle, GDI pump and injectors |
R&D Activities
-Approximately 20% of the Company’s research and development activities involve the Company working with universities or excellence centers through cooperation agreements.
Product Development
Technologies showcased at CES 2019
-The Company will showcase its offerings at CES 2019 in Las Vegas. Its third-generation Smart Corner will be unveiled at CES 2019. Smart Corner integrates autonomous sensors into headlamps and tail lamps to provide OEMs with the required functionality for autonomous driving. The Company will also showcase seamlessly integrated connectivity features in a test vehicle. Technology includes active matrix organic light-emitting diode (AMOLED) displays embedded in the front grille and rear applique to communicate intent and autonomous signaling. The Company will also display DLP, the world’s first 1.3 million pixel production headlamp. Booth attendees will see a variety of ADB modules. Headlamps equipped with ADB can operate in high beam mode nearly 100% of the time, providing maximum light output. (From a press release on December 20, 2018)
Technologies showcased at CES Asia 2018
-The Company will present advanced HMI and E-Cockpit, ADAS, intelligent automotive lighting and powertrain technology for GDI systems at the CES Asia 2018. The Company will present its vision of the E-Cockpit, a synthesis of technology which embraces the entire dashboard in a single element which includes various displays, including the instrument cluster and the central information display. There will also be a presentation of the prototype for the Cockpit-ECU, characterized by a single processor which can simultaneously integrate and manage up to four screens with different operating systems and technology (LED, Touchscreen, etc.) Shanghai Magneti Marelli will present solutions for hybrid and electric drive systems, as well as Water Injection and 1000-bar GDI technology. (From a press release on June 16, 2018)
Technologies showcased at NAIAS 2018
-The Company will showcase its latest technology and innovation in electronics, lighting and autonomous vehicles at the North American International Auto Show in Detroit. Building on its innovations on display at CES 2018, the Company will showcase its Smart Corner and sensor fusion technology. Building on its recent investment in solid-state lidar company LeddarTech, the Company has integrated a camera, radar and lidar into advanced projector headlamps and tail lamps to produce the fully functional Smart Corner. The Company will offer test drives and rides in a production vehicle, exposing passengers to sensor fusion technology in action. Sensor fusion is the process of gathering inputs from multiple sensors and fusing it together, to generate a more accurate and comprehensive description of the surrounding environment than could be calculated or determined by individual sensors. (From a press release on January 17, 2018)
Investments Outside Italy
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-In an investor update, Talbros Automotive Components discussed its capacity expansion plans. Regarding its joint venture with the Company, Talbros has acquired a small facility in Manesar, India to satisfy requirements for Maruti. Talbros installed robotic welding machines, with an investment of INR 90 million. (From Talbros Investor conference call Q3, FY 2017-18)