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FCA Discussing Possible Partnership With Hyundai

FCA Discussing Possible Partnership With Hyundai

Fiat Chrysler Automobiles is currently in talks with Hyundai regarding possible partnerships. Seemingly always seeking a partner, FCA says the talks are strictly regarding technical partnerships, not a merger or acquisition.

FCA CEO Sergio Marchionne has been seeking a partner for the automaker since about 2015, when he publicly courted General Motors for a possible merger. After failing to win GM over, rumors have suggested the company has talked to Volkswagen AG and other automakers.

Now the company is apparently trying Hyundai, but with a more achievable goal in mind than a full-scale merger. FCA says it already works with Hyundai by buying components from them. Marchionne says the company is exploring ways of deepening that relationship, such as collaborating on transmissions or hydrogen fuel cell technology.

According to Reuters Marchionne was asked by journalists if the talks could potentially lead to a merger and his response was, “I don’t believe so.”

Marchionne is slated to retire from the top-spot at FCA in 2019. As such, the executive is currently in the process of drafting a new business plan for FCA that will carry the organization through 2022. The fact he’s looking for partners during this process comes as little surprise.

His business plan is expected to recommend FCA spin-off some of its assets, including component businesses to focus on its core vehicle-building assets.





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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 One Comment

  1. Dec 4, 2017 at 12:57 pm

    I'd buy a Hyundai built Ram truck...

    Dodge/Chrysler needs fuel efficient vehicles, Hyundai needs trucks/SUV's...

    I don't hold my breath for this one, as I fear FCA isn't long for this world.

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 Latest Forum Messages
  1. Andrew_L
    donmateo
    Not a fan of either company, I still think FCA has some issues that are not surface level yet that they're trying to be bailed out from.


    Absolutely with FCA! Hyundai-Kia have issues too but not as nearly as FCA. I won't forget getting a brand new (at the time) Sonata in 2013 on a business trip and the suspension creaking like crazy over every bump and especially over speed bumps. I afterwards searched that issue and found several complaints on a Hyundai board. The only HK rental I ever had that I enjoyed was the Forte which surprised me.
    2b2
    nsaporito
    It's crazy to think, but this is like two weak links coming together.

    A few years ago Hyundai was the darling of the industry. Management sure got too comfortable.


    wait...

    ...whad-I miss??
    donmateo
    Not a fan of either company, I still think FCA has some issues that are not surface level yet that they're trying to be bailed out from.
    nsaporito
    It's crazy to think, but this is like two weak links coming together.

    A few years ago Hyundai was the darling of the industry. Management sure got too comfortable.
    Andrew_L
    Tone
    Good point!

    I tend to be Dodge/Chrysler focused when I think about FCA, ignoring Jeep and Ram. You are right -- both would offer technologies/platforms that would likely be very interesting for Hyundai!


    It's a gap in the Hyundai lineup that I know they would love to get into
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