By merging with FCA, Hyundai would be number one.
We have heard several rumors indicating that Fiat-Chysler CEO Sergio Marchionne wanted to have a strategic partner to develop new technology. Reportedly, FCA had already reached a deal to merge with Volkswagen, but we have not seen any official announcement. Now, The Korea Herald reports that Hyundai Motor is looking to acquire the seventh largest automaker, FCA. This acquisition would make Hyundai the largest automaker in the world. So far, FCA has denied that this deal is on the table, but that doesn't mean it isn't happening.
Lee Jae-il, an analyst in charge of automobiles at Eugene Investment & Securities said that Hyundai would benefit from FCA's expanded portfolio and increased brand awareness in the the US and Europe. Hyundai and FCA sold a combined 11.5 million vehicles last year, which would place the two as the number one automaker if they joined forces. This is not the first time that we have heard about a rumor surrounding an FCA buyout. We have also heard rumors that Chinese automaker Great Wall Motors was looking to buy the Jeep brand from FCA. FCA has also looked to merge with GM and VW, but both companies have denied attempts to acquire FCA.
The Hyundai rumors began because of uncertainty surrounding Great Wall's acquisition of Jeep. According to estimates, a buyout of FCA would cost 11.2 trillion won ($9.83 billion) including Maserati and parts unit Magneti Marelli. These rumors of FCA mergers don't seem to be going away, so we'll be interested to see if any of them turn out to be true.