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Rumor: Hyundai-FCA Merger To Become World’s No. 1 Automaker

An interesting report is circulating in the South Korean business media, alleging that Hyundai Motor is interested in buying Fiat Chrysler. The reasoning is backed by the sliding sales figures in China and the U.S., markets that Hyundai can’t afford to lose grip. If proven right, such a merger would make FCA, Hyundai, and sister company Kia the world’s premier automaker by volume.
Hyundai Elantra GT and Dodge Demon 125 photos
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The Korea Herald reports: “Hyundai is denying the merger,” but analyst Lee Jae-il maintains that Hyundai remains a possible buyer for the failing Italo-American automaker. After being denied by General Motors and the Volkswagen Group, and after refusing a handful of Chinese companies, there is a possibility Sergio Marchionne will consider the alleged offer carefully.

Local media started reporting on the Hyundai-FCA merger last week, with the possible deal originating from automotive industry analysts. The Fiat Chrysler buyout is estimated at 11.2 trillion won, which translates to $9.83 billion at current exchange rates. For the money, Hyundai would also control luxury brand Maserati and high-tech components manufacturer Magneti Marelli.

Without the House of the Trident and Magneti Marelli, the deal is estimated at 5.6 trillion won, which converts to $4.94 billion. Except Ferrari, which is now a holding company incorporated in the Netherlands, Fiat Chrysler Automobiles consists of Alfa Romeo, Abarth, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati, and Ram Truck, as well as parts, service, and customer care subsidiary Mopar.

Head honcho Sergio Marchionne prepares to leave Fiat Chrysler at the beginning of 2019, and until his departure, Marchionne intends to erase all debt and accumulate a little bit of cash in the coffer. That’s a tough call considering that only Jeep and Ram bring big profits to the group, a set of circumstances that pave the way for a buyout by the end of 2018.

South Korea’s automaker is targeting 5,080,000 sales for the 2017 calendar year, following global sales of 4,860,049 vehicles in 2016. Over at Fiat Chrysler Automobiles, the Italo-American juggernaut trails behind with 4.7 million passenger cars and commercial vehicles sold in 2016.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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