Fiat Chrysler Automobiles (FCA), Italian-controlled Multinational Corporation headquartered in London was in the headlines recently over a possible buyout from Guangzhou Automobile Group and Great Wall Motor Company. Emerging reports indicate the interest now moved from China to South Korea.
According to the South Korean press, Hyundai Motor Company (HMC) is interested in a partnership with the FCA. The Seoul-based multinational automotive manufacturer is also exploring the option to buyout FCA, reports The Detroit Bureau.
HMC is currently the third largest vehicle manufacturer in the world. On the other hand, FCA is world's seventh-largest auto manufacturer. If the report is anything to go by, the deal will aid Hyundai to dethrone Volkswagen and Toyota as world's largest car maker.
The report claims Hyundai's interest over FCA is not new. Reports on Hyundai-FCA deal first surfaced in late August shortly after FCA's interest in Chinese automakers appeared to wane.
Hyundai is denying the merger, but the need to acquire a company is higher than ever due to the crisis in the Chinese and US markets, says Lee Jae-il, an analyst in charge of automobiles at Eugene Investment & Securities. The acquisition would not only increase sales but would help Hyundai fill its glaring hole when it comes to SUVs and trucks.
Hyundai, with its subsidiary Kia Motors, sold 7.88 million vehicles in 2016, while FCA moved 11.5 million. Analysts believe the FCA acquisition would cost Hyundai about $9.83 billion. The deal will include some of the novelty brands such as the Abarth, Alfa Romeo, Jeep, Maserati and the Magneti Marelli parts division coming under Hyundai umbrella.
FCA CEO Sergio Marchionne previously shot down reports, saying the company has not received any official offers from Chinese automakers.
Source: The Detroit Bureau