In a recent interview with Reuters, FCA Boss, Sergio Marchionne, said that FCA and Hyundai have been in talks over a new partnership, but a merger isn’t being considered at this time. At this time, there’s no word as to what FCA can offer Hyundai, but FCA is interested in the Korean automaker’s research in hydrogen fuel and transmission development. This is likely part of FCA’s plan to separate component brands like Magneti Marelli and Comau, though this hasn’t been confirmed and an official business plan isn’t expected until sometime in mid-2018 with this separation taking place by the end of 2018. If the plan does come to fruition and these companies are separated it could help push FCA back into the green for the first time, as a whole, in a long time. Want to know more? Keep reading…
Needless to say, we’ll surely hear more about these talks between FCA and Hyundai in the future, but for now, anything or nothing could come out of the deal. With FCA struggling so bad, it needs to become profitable quickly and Marchionne’s business plan of separation could lead the way. A new partnership with Hyundai could certainly ease the pain and the journey to recovery as well. After all, Magneti Marelli manufactures various electronics, engines, suspension, and lighting, among others. And, Comau, is involved in robotics manufacturing and the development of artificial intelligence. FCA certainly could benefit from Hyundai’s hydrogen and transmission R&D but can Hyundai benefit from anything FCA can offer from its core group of companies now or after separation? It’s really hard to tell at this point, but it will be interesting to see what Hyundai has to say about this. After all, the brand has been wildly successful since it came to the United States, so FCA could certainly learn a thing or two from the automaker, that’s for sure.
What do you think? Can both companies benefit from such a partnership or should Hyundai run away from the deal screaming? Outside of the Jeep and Ram brands, Chrysler almost comes off as a charity case so expect to hear about some stout negotiation in the future. Until then, leave your comments down below.
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