Hyundai claims FCA buyout rumor is "totally groundless" | UpTech Fiat Chrysler merger rumors are within the information once again, this time with Hyundai. claims FCA According to unnamed resources noted via the Asia Times Hyundai claims FCA, Hyundai Motor Group CEO Chung Mong-koo has a close eye on FCA's stock fee totally groundless. He anticipates a decline, and once that occurs, the assets say the Hyundai CEO will pull the cause on a takeover bid, that is slated to take place sometime earlier than FCA's annual shareholders' meeting inside Hyundai claims FCA the spring of subsequent year whilst FCA CEO Sergio Marchionne is anticipated to step down At the moment it's uncertain who would be successful Marchionne as CEO, so one totally groundless advantage for FCA is that a Hyundai merger would solve that destiny management thriller. One caveat with that, but, is that Hyundai CEO Mong-koo is 80 years old, so retirement is looming.
If a Hyundai-FCA merger were to show up, it would create the world's largest automaker. That's no longer the best gain for each parties. As we have seen with FCA merger rumors within the beyond, like while Volkswagen turned into taken into consideration a capability suitor, there would be crucial product and production overlaps. That might not be the case with a Hyundai-FCA merger, rumors of which first surfaced closing 12 months possibly maximum wonderful of all, for FCA as a minimum, is that it has no electric automobile approach. That should mean catastrophe for Fiat Chrysler in the coming decade. EV assist from Hyundai, but, might steer FCA clear of that iceberg.
On top of all that, america and South Korea are unified with the aid of a loose trade settlement, which might handiest ease the switch of models between each international locations yet despite the synergies that could expand through a Hyundai-FCA merger, senior organization supervisor of Hyundai Corporate and Marketing Public Relations, Michael Stewart tells us, "That rumor is absolutely groundless." We additionally reached out to FCA about the rumored merger, but it declined to remark.
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