Hyundai FCA takeover will make the Korean manufacturer the world’s largest automobile company.
As announced in the company’s annual investor meeting, FCA (Fiat Chrysler Automobiles) CEO Sergio Marchionne will be retiring next year. Hyundai plans to launch a takeover bid before May 2019, when FCA’s next investor meeting will be held, and is reportedly waiting for the Italian-American automaker’s share prices to go down.
Time and again, Marchionne has emphasized on the important of mergers to reduce overcapacity and make the cost of massive investments, that are required for development of EVs and autonomous vehicles, more affordable for companies. The FCA Group was formed in October 2014 and holds many valuable brands as subsidiaries, including Abarth, Dogde, Jeep and Ram.
While talks with GM and Volkswagen Group failed to go through, China’s Great Wall Motors has shown some interest in FCA’s takeover. However, it is believed that a South Korean buyer (Hyundai) will be preferred by the US President as well as members of Congress for this merger. FCA has a strong network in the States while Hyundai’s strength lies in the Asian markets.
Meanwhile, sources also report the FCA Chairman John Elkann and Sergio Marchionne are in serious disagreement over who takes the lead of FCA after the latter’s exit next year. While Marchionne wants CFO Richard Palmer to take over, Elkann is keenly pushing for an industrial CEO.
Hyundai FCA Takeover
– Hyundai planning to launch takeover bid for FCA
– Hyundai CEO waiting for an unexpected decline in FCA share prices
– Merger will give Hyundai access to valuable brands such as Jeep, Ram and Dodge
Source – AsiaTimes.com