Hyundai is apparently seriously interested in buying out Fiat Chrysler Automobiles (FCA).
Word the Korean car making giant was interested in buying FCA first surfaced in August – around the same time rumors began to swirl that China’s Great Wall, and other Chinese brands, may be interested in purchasing the Italian-American company. According to The Detroit Bureau, the Hyundai-FCA rumors have recently begun to heat up in the Korean press. Hyundai is denying it’s interested in FCA, but analysts believe Hyundai would be smart to buy-up the company as it becomes increasingly difficult to gain market share in the U.S. and China.
If Hyundai and FCA did come together as one, it would make the resulting conglomerate the largest automaker in the world based on annual sales, surpassing rivals like Toyota, Nissan and VW. Hyundai-Kia sold 7.88 million vehicles in 2016, while FCA moved 11.5 million. Analysts believe the FCA acquisition would cost Hyundai about $9.83 billion – a figure that includes both Maserati and the Magneti Marelli parts division. Earlier this year, Samsung expressed interest in purchasing Magneti Marelli as a way to get its foot in the door in regards to in-car electronics, but the deal fell through.
[Source: The Detroit Bureau]