Rumours were everywhere last week that Korean automaker Hyundai may make a bid for FCA. While FCA have been quite open about being amenable to takeover by another automaker, is Hyundai the one?
This is all rumour right now. Apparently Hyundai execs have been evaluating the value of buying the brand but nothing more is yet known. But why would they want a piece of FCA?
For a start, buying Fiat Chrysler Automobiles would give Hyundai some useful brand names to play with. They would get Jeep, Ram, Fiat, Dodge, Chrysler, Abarth, Alfa Romeo, Lancia and Maserati to name a few. Some of these brands are obviously worth more than others but they all offer windows into more markets.
Hyundai does have a presence in the US and Canada but we would all admit that it doesn’t have the penetration it would like. Plus, FCA owns vehicle types that Hyundai have already expressed an interest in.
Hyundai have previously said they wanted to get into trucks, which Ram would allow. They have also wanted to get into the subcompact market which Fiat plays a huge part in. The Fiat 500 is a massive seller and anyone who owned that trademark would generate huge revenue.
Chrysler and Dodge could utilize the Hyundai or Genesis platform to elevate their models and use the more efficient and smoother engines as well. Jeep should be left well alone as it is doing very well indeed right now. Abarth and SRT are both tuning houses of good repute and should also be left alone.
Alfa Romeo is undergoing something of a renewal and it is hoped that the brand can be saved in its own right. Maserati makes some of the best GT cars and cruisers in the world and the technology could be very useful to Hyundai’s Genesis sub-brand.
Hyundai isn’t the only company said to be interested in FCA. BMW, Volkswagen, Toyota and no doubt others have all indicated an interest in the company. Will it be Hyundai who eventually picks it up? Only time will tell. For now, both FCA and Hyundai are keeping tight-lipped about the entire deal, if there is one.