Conflicting reports have left us confused.
It’s no secret that Fiat-Chrysler boss Sergio Marchionne has been trying to solicit a partnership between FCA and every significant automotive conglomerate for the past few years. The rumour mill has suggested that FCA would partner-up with Volkswagen, and several Chinese concerns, most recently Great Wall Motors.
Of course, each and every one of these rumours have been quashed swiftly following their circulation (and hardly ever by FCA). However, the recent rumours about FCA being sized up by Hyundai sounded like they held more water than the usual hot gossip around the company.
Perhaps the report circulated by the Asia Times was better articulated and reasoned than most FCA-takeover-rumour articles. The report suggested that HMG CEO Chung Mong-koo was waiting for FCA’s shares to take a dip during the lead-up to Marchionne’s retirement next year before bidding to take over the Italian-American automotive conglomerate. Additionally, the report was on the money when it analysed the lack of production facility overlaps between FCA and the Hyundai Motor Group (HMG), as well as the existing trade agreements that exist between the US and South Korea (trade issues would hamper an FCA takeover by Chinese firms, for example).
Further, the fact that FCA presently lacks a clear, robust strategy of tackling the electrification of mobility is an area where a tie-up with HMG would be immensely beneficial, given that HMG has been hard at work developing and optimising its EV technology over the last few years (and you can read about one of their breakthrough products here).
However, talking to CNET, Hyundai’s PR boss Michael Stewart said that the rumour of an FCA takeover is “totally groundless.” Pretty clear denial there. We’re going to chalk this one up to perhaps yet-another Marchionne-instigated rumour but we’ll certainly keep an eye on things, so stay tuned to CarShowroom as we bring you more updates as they come.
