Hyundai intends to buy a controlling package of Fiat Chrysler Automobiles

Hyundai intends to buy a controlling package of Fiat Chrysler Automobiles

June 29, 2018 0 By autotimesnews

According to various sources, the South Korean automobile giant may acquire a controlling “package” of the Italian-American concern FCA during the next year. If Hyundai and FCA unite, then the new company will become the world’s largest car manufacturer.

Again, rumors began circulating that the management of Hyundai intends to purchase a part of Fiat Chrysler Automobiles. According to the foreign edition of the Asia Times, whose journalists refer to their own proven sources, Chung Mong-Ku, who is the current general manager of the South Korean auto giant Hyundai Motor Group, closely monitors the state of FCA shares and allegedly intends to buy enough of them in order to gain control package. Insiders point out that Hyundai will begin the process of buying up shares before Sergio Marchionne, who is the director of the FCA, may leave the group – rumored that this may happen next year.

According to insider information, the current chairman of Fiat Chrysler Automobiles and chief shareholder John Elkann is not very interested in managing the concern. It is possible that this is why he could agree to the merger of the FCA with Hyundai.

According to a foreign publication, Hyundai can be a particularly good partner, because in the Asian region, the share of FCA is now relatively low, but Hyundai has a fairly strong base there. In addition, a free trade agreement between the United States and South Korea would make the transportation of models between countries a more economical process, especially in light of the possibility of raising tariffs for imported cars from the European Union. Closer political ties between the United States and South Korea may make the merger more acceptable.

Let’s remind our readers that rumors about a possible merger between Hyundai and FCA appeared last year, when the South Korean company allegedly showed interest in merging. Officials of both sides, including Marchionne, publicly denied reports. Later on, the parties stated that they are negotiating a possible technical partnership that concerns the development of hydrogen fuel.