South Korea’s Hyundai is negotiating with Fiat Chrysler Automobiles (FCA) on the possibility of a purchase of a stake in the Italian-American corporation or a potential joining together. The Kragujevac factory might thereby get a new owner.
The news about the negotiations of FCA and Hyundai first appeared in South Korean media, and then in American media too, and it has also been mentioned by the renowned Forbes. As they say, FCA is seeking a partner primarily so that they could share expenses of the development of an electric and a hybrid model, but also to strengthen the company, as the joining together with Hyundai would turn them into the biggest global car producer.
As analysts estimate, FCA would enable the South Korean company to recover in the Chinese market, where they have been recording a drop due to the crisis with North Korea, but also to make progress in the European market, where Fiat is positioned remarkably well. On the other hand, Hyundai would mean better sales for FCA in the USA, where the 500L produced in Serbia is sold as well.
Analysts estimate that South Koreans are primarily interested in buying the stake in FCA related to the production of SUV vehicles, crossovers and commercial vehicles, whereby Kragujevac’s 500 L might be one of the assets of FCA in the negotiations. It is already produced as a type of crossover in its Cross variety, and the basic version of the model which will become available in the market in 2018 has also been redesigned to resemble crossover vehicles.
Let us remind that it was mentioned recently that FCA was also negotiating with the Chinese company Great Wall
about a potential joining.