Fiat Chrysler Automobiles N.V. agreed to sell its Teksid SpA iron foundries to Brazil-based Tupy S.A. for an estimated $233 million (€210 million), subject to customary purchase-price adjustments at closing, which is expected in the second half of 2020. Fiat recently finalized its much-discussed merger with French automaker PSA Groupe.
Tupy indicated it will grant commercial bonuses and discounts to FCA for long-term supply of automotive parts, describing these as "typical of the industry".
"Together, Teksid and Tupy will continue to develop new technologies to support the continued success of our products,” state FCA global chief manufacturing officer Scott Garberding. “The proposed transaction represents another important step in the implementation of FCA’s business plan.”
The Teksid aluminum foundries in Brazil and Italy are not included in Tupy's acquisition.
The sale includes foundries in Brazil, Mexico, Poland, and Portugal, as well as a joint-venture interest in an automotive foundry China, producing gray, ductile, and CGI automotive castings. The range of products includes cylinder blocks and heads, crankshafts and cam shafts, suspension arms, bedplates, steering knuckles, differential cases, and exhaust manifolds.