Magneti Marelli

FCA will offer a special cash distribution to its shareholders.

Buyer is KKR's Calsonic Kansei out of Japan.

FCA 'will evaluate bona fide proposals for alternative transactions'

Document shows how the parts company will be separated like Ferrari.

Fiat Chrysler Automobiles reduced its debt by more than expected in the first quarter, putting the carmaker well on course to become cash positive later this year.

Fiat Chrysler said on Thursday its board had tasked management to proceed with spinning off Magneti Marelli and distributing shares in a new holding for the 99-year old parts business to FCA investors.

FCA is rumored to be considering selling off parts supplier Magneti Marelli, possibly for around $3.3 billion. Such a deal likely wouldn't come until after the Ferrari IPO, though.

Race cars are going hybrid these days. Formula One racers store regenerated brake energy. Porsche packs a flywheel into the 911 GT3 R. Just the other day, Toyota unveiled its new TS030 Hybrid endurance prototype. And now even Jim Glickenhaus' one-off

Alfa Romeo MiTo Kit-One by Magneti Marelli Elaborazione – Click above for high-res image gallery

BMW Sauber F1.09 – Click above for high-res image gallery