Hyundai Motor, South Korea’s leading automotive company, on Dec. 3 rejected Fiat Chrysler Automobiles CEO Sergio Marchionne’s comments that the two are discussing a technical partnership.
“Hyundai is not is in talks with FCA over a partnership on hydrogen propulsion,” a company spokesperson told The Korea Herald.
Marchionne said earlier this week there is the potential of hydrogen-related collaboration with Hyundai, the world’s fifth-largest automaker, which currently supplies auto parts to FCA’s factory in the US. He confirmed the two are not likely to merge.
Italian-controlled automaker FCA sold 4.1 million units worldwide in 2016. It also owns auto brands Fiat, Chrysler, Jeep, Maserati, Alfa Romeo and others.
Despite Hyundai’s repeated denial, reports of the Korean automaker’s possible purchase of FCA sparked in August this year, as Hyundai could bolster consumer awareness in the US and Europe. FCA, the world’s seventh-largest automaker, could benefit from the merger with restructuring efforts.
In a report published in September this year, Lee Jae-il, an analyst in charge of automobiles at Eugene Investment & Securities, said “Hyundai is denying the merger, but the need to acquire a company is higher than ever due to the crisis in the Chinese and US markets.”
FCA has also previously sought mergers with US auto giant GM, German automaker Volkswagen and Chinese automaker Great Wall Motors.
By Kim Bo-gyung/The Korea Herald (email@example.com