Enter private-equity giant KKR & Co.KKR is in talks to acquire Fiat Chrysler Automobiles NV’s parts unit, Magneti Marelli SpA, Bloomberg News reported last week. KKR would likely roll the business up with Calsonic Kansei Corp., the Japanese parts company KKR bought from Nissan Motor Co. in late 2016. Creating a behemoth would put bargaining and pricing power, now lost to carmakers, back in the hands of the parts industry. Nissan sold Calsonic Kansei to KKR to unshackle itself from a captive supplier and increase its ability to source parts globally. China, meanwhile, has focused its industrial policies on boosting the parts industry, as we wrote here, adding pricing pressure on small U.S. suppliers and reshaping the home market.

Source: Washington Post August 26, 2018 22:52 UTC