A fresh report has reignited rumours that the Hyundai Motor Group has plans to take over Fiat Chrysler Automobiles.
According to Asia Times and its sources, Chung Mong-koo, the South Korean automaker’s CEO, is waiting for FCA shares to fall before launching a takeover bid. The report suggests that the bid will likely take place before FCA CEO Sergio Marchionne steps down in May 2019.
If the two firms were to become one, they would create the world’s largest automotive group.
In September 2017, it was reported that the Korean group – which also includes Kia Motors – had shown an interest in some sort of merger with FCA. Merging with FCA would, the report explained, allow Hyundai to quickly expand its portfolio in various markets, including adding more SUVs and bakkies to its arsenal.
In addition, a merger could boost FCA sales in the Asian region, while, as Motor1.com points out, a free-trade agreement between the United States and South Korea would make transporting vehicles between the two countries an easier and ultimately cheaper process for both.
At the time of the earlier report, Hyundai had denied plans of a merger, while Marchionne claimed that he had not received any fresh offers from China or elsewhere.
