Business and Lifestyle Directory

Hyundai Planning Takeover Of FCA, Waiting For Shares To Fall

The tie-up could happen within the next year.

©   2018 Hyundai Sonata Update

By Chris Bruce,

The tie-up could happen within the next year.

Rumors are once again swirling about a possible tie-up between Hyundai and Fiat Chrysler Automobiles. According to the Asia Times citing unnamed sources, Hyundai Motor Group CEO Chung Mong-Koo is watching FCA's stock closely and allegedly intends to buy enough shares to take over the rival automaker. The insiders indicate that Hyundai would launch its purchase sometime before Sergio Marchionne leaves FCA next year.

With Marchionne gone, there will be a vacuum at the top of FCA. According to these insiders, company chairman and major shareholder John Elkann doesn't have much interest in running the automaker, so he could see a merger as an attractive alternative.

Hyundai could be an especially good partner. FCA is currently relatively weak in the Asian region, where Hyundai has a strong base. In addition, a free-trade agreement between the United Staes and South Korea would make transporting models between the countries a more economical process – especially in light of the possibility of higher tariffs on imported vehicles from the European Union. The closer political ties between the U.S. and South Korea might make the merger more palatable for regulators in the countries.

Speculation about a Hyundai-FCA merger popped up last year when the South Korean company allegedly expressed interest in the tie-up. Officials from both sides, including Marchionne, publicly denied the reports. Later, the firms said they were negotiating a possible technical partnership on transmissions and hydrogen tech.

Marchionne has expressed his desire for FCA to merge with another automaker. He lobbied hard for a tie-up with General Motors and reportedly explored hookups with many other companies, including PSA and Chinese firms.

If Hyundai and FCA merge, the new company would immediately become the world's largest automaker with around 11.5 million worldwide deliveries each year.


Note: If you think this story need more information or correction, feel free to comment below your opinion and reaction.

Autos News: Hyundai Planning Takeover Of FCA, Waiting For Shares To Fall
Hyundai Planning Takeover Of FCA, Waiting For Shares To Fall
The tie-up could happen within the next year.
Autos News
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy