Jose Altoveros / Manufacturer Press | July 02, 2018 14:40
Could a Hyundai, Fiat-Chrysler merger take place soon?
Rumors are once again circulating regarding a possible merger or takeover of Fiat Chrysler Automobiles (FCA). This time, it involves Korean automaker Hyundai Motor Group possiby eyeing a tie up with the Italian-American automotive group.
According to the Asia Times who cited unnamed sources, Hyundai CEO Chung Mong-Koo is said to be keeping a close watch on FCA's stocks for quite some time already. Should the price drop, Mong-Koo will allegedly buy enough shares to be able to takeover the automaker. Furthermore, the source mentions that Hyundai will be buying the shares before Sergio Marchionne steps down as CEO of FCA in April 2019.
Over the course of 2017 and 2018, numerous rumors and reports have already spawned regarding FCA being bought by another company. These reports include Chinese companies such as Great Wall, Geely, and Dongfeng. In fact, even British automaker Jaguar-Land Rover was rumored to have been intrerested in buying FCA. So far however, none of these reports seem to have been true or confirmed. Could Hyundai finally be the one to buy FCA?
Should Hyundai and FCA merge, it would form one of the largest if not become the largest automaker in the world, beating Nissan-Renault. FCA would also be able to expand their market to Korea and Asia even more given Hyundai's strong base in the regions. At the same time, Hyundai would be able to secure a larger part of the market in areas where FCA is strong such as the United States.
At the moment, both Hyundai and FCA have yet to comment regarding the rumors of a possible merger.
Source: Asia Times