Saturday, 20 October, 2018

Hyundai group poised to take over Fiat Chrysler Automobiles?

Hyundai could buy Fiat Chrysler Automobiles Hyundai could buy Fiat Chrysler Automobiles
Nellie Chapman | 04 July, 2018, 21:23

This has led automakers all around the globe to come up with new plans to stay ahead of incoming competition, powered by the deep pockets of a certain big Asian country near India.

Various vehicle makers have joined hands to make hybrid engines, one chassis nomenclature that can be adaptable when future technology becomes the centre point. It's believed Hyundai is simply waiting for FCA stock prices to drop. Previous year there were rumours Hyundai and FCA were in talks for a tie-up, but FCA boss Sergio Marchionne denied the rumours.

Major Hyundai shareholder Elliot Management also recently promoted FCA Europe CEO Alfredo Altavilla to the board of Telecom Italia, strengthening relationships between key players in the background.

Now, according to a report from Asia News, Hyundai Motor Group CEO Chung Mong-Koo is watching FCA's share price ticker with an expected downturn in value to trigger a bid within 12 months. That would not be the case with a Hyundai-FCA merger, rumors of which first surfaced previous year.

This was quickly addressed by Hyundai Motor America corporate spokesperson Michael Stewart, though.

A current free trade agreement between the US and South Korea would also help facilitate the merger and lower import/export costs compared to higher tariffs on European models.

In 2017, there were also several reports that Hyundai and FCA were exploring a merger. His primary target for such a tie-up was General Motors, but he reportedly at least investigated other partners.

If the two firms were to become one, they would create the world's largest automotive group.