Could Hyundai be the interested party that FCA has been searching for?
The quest undertaken by Fiat Chrysler’s CEO Sergio Marchionne to find another automaker for FCA to merge with is one that has been full of twists and turns. In the most recent development, several Chinese automakers expressed their interest in a possible deal with FCA, but things fell apart when it became apparent that the companies were only interested in purchasing the Jeep brand.
Still, after countless rejections from GM and other automakers, the latest round of rumors hint at a merger with an unlikely, yet stragic source: Hyundai.
Late last week, reports from the South Korean press seemed to indicated that Hyundai was investigating a possible merger with FCA. Said reports eventually made their way up the rumor mill to several American media sites and sources.
If Hyundai and FCA were indeed to merge, it would make their combined company the single largest auto manufacturer in the world. Last year, FCA and Hyundai together sold a total of 11.5 million vehicles, more than the 10.3 million vehicles sold by Volkswagen, currently the largest auto manufacturer globally.
With the elimination of the Dodge Dart and Chrysler 200, FCA is lacking a strong lineup of passenger sedans
While a merger of this size would be unprecedented in the modern automotive age, it does produce benefits for both FCA and Hyundai. While FCA’s lineup is full of utility vehicles, it is currently lacking in sedans and small cars.
The situation is the opposite for Hyundai, which has plenty of passenger sedans to choose from, but only a small, yet healthy selection of crossovers and SUVs. The current brands belonging to both companies would do a good job complementing one another, after, of course, the elimination of redundant models.
A merger would also help FCA with its march toward new vehicle technologies. While other automakers, including Hyundai, have established plans in place for electric vehicles and vehicle autonomy, FCA has fallen a bit behind in this area.
Right now, everything is pretty much just speculation, with no confirmation from either FCA or Hyundai. Still, if a merger between the two does come to fruition in the near future, then other automotive brands might soon be facing vehicle-based juggernaut on the business battlefield.
News Source: The Drive
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