Chrysler sets stage for spinoffs

Article Excerpt

FIAT CHRYSLER AUTOMOBILES N.V. $21 (New York symbol FCAU; Manufacturing sector; Shares o/s: 1.7 billion; Market cap: $35.7 billion; No dividend paid; Takeover Target Rating: Lowest; www.fcagroup.com) plans to focus on its four core brands: Jeep SUVs, Ram pickups, and Alfa Romeo and Maserati luxury cars. In addition, the company plans to invest more in electric-powered vehicles and self-driving cars. The company expects the plan will double its annual operating earnings to around $19 billion by 2022. The new strategy could also make it easier for Fiat to spin off its less-important car brands. The company has already shared its plans to set up its Magnetti Marelli auto parts manufacturing business as a separate company by early 2019. However, Chrysler stock has almost doubled since August 2017 and prospects for further growth appear limited. We don’t recommend shares of Fiat Chrysler. Chrysler. …