South Korean carmaker, Hyundai is negotiating with Fiat Chrysler (FCA) about acquiring a share in this mixed Italian-American corporation, or a possible merger. If the latter happens, it could mean that FCA’s factory in Kragujevac could be getting a new owner.
The news about the negotiations between Hyundai and Fiat first appeared in South Korean and then in US media. Even the renowned Forbes magazine reported about it. Several websites, including Asia Times, have reported that Fiat Chrysler Automobiles (FCA) chairman and chief executive Sergio Marchionne is setting his sights on a merger with South Korean automotive giant Hyundai Motor Group (HMG) while at the same time seemingly using China’s Great Wall Motor Co as a stalking horse, sources close to the situation say.
Forbes reports that Hyundai’s second-quarter profits were down by half from last year, as the company reported a 14thstraight quarter of declining profits, and that the company is having problems with its sales in China. On the other hand, Fiat’s second-quarter sales in China have been inching upward. “FCA’s success in China is driven by its locally made and imported Jeeps, as Chinese car buyers follow the U.S. lead and switch from sedans to SUVs and crossovers. Jeep sales in 2017 in China are well ahead of their 2016 pace”, Forbes writes.
Market analysts say that the Koreans are primarily interested in buying a segment of Fiat that produces SUVs, crossovers and commercial vehicles. The Fiat 500L, which is produced in Kragujevac, could be one of the trump cards in Fiat’s negotiations with Hyundai. The 500L is already produced in the crossover model, and the basic model, that has been redesigned and will be launched in 2018, is very reminiscent of crossover.
To remind, the media have also been reporting recently about FCA negotiating with the Chinese carmaker, Great Wall Motor about a possible merger.
This post is also available in: Italiano