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Hyundai-FCA Buyout Rumor Is “Totally Groundless”

July 4, 2018 0 Comments

Fiat-Chrysler Automobiles CEO Sergio Marchionne has been courting other automakers over the past year with merger proposals, seeking to keep the automaker’s footing following his planned departure in May next year.

Rumors involving Hyundai buying out the Italian automaker started circulating last year. A Hyundai-FCA merger could help “fill some gaps” in FCA’s product planning. According to unnamed sources cited by the Asia Times, Hyundai Motor Group CEO Chung Mong-koo intended to motion for a takeover, “pending an expected decline in FCA’s stock price.”

If a Hyundai-FCA merger were to occur, the deal would result in the world’s largest automaker – an advantage for both parties. And for FCA, which has virtually no strategy for electrification, Hyundai’s electric support could help keep the Italian automaker afloat as the industry shifts towards EVs.

It’s unclear who will succeed Marchionne as CEO come March, and a merger with Hyundai could help clear up the leadership mystery. As a caveat, however, Mong-koo is 80 years old.

It’s not the first time FCA has been rumored to be partnering up with another automaker; Volkswagen was considered as a “potential suitor” at one point.

In this case, however, the partnership is not meant to be.

“That rumor is totally groundless,” Michael Stewart, senior group manager of Hyundai Corporate and Marketing Public Relations, told to Roadshow.

FCA declined to comment on the Hyundai-FCA merger rumor.

Last year, Hyundai and FCA were reportedly in talks to collaborate on tech like hydrogen-powered vehicles and transmissions, according to Motor1.

About the Author:

Dave Martinson is a broadcast journalist for DrivingSalesNews. He has a background as a TV News Reporter, Anchor and Producer. He has also worked in Digital Marketing and Human Resources. He received his bachelor’s degree in Communication from Brigham Young University – Idaho. He’s married and originally from the state of Washington. He’s a huge football fan and enjoys the outdoors.