Fiat Chrysler Automobiles is in talks with South Korea’s Hyundai about a technical partnership, but there are no merger talks between the two, FCA Chief Executive Sergio Marchionne said on Saturday.
Khodrocar - FCA is often the subject of merger speculation, especially after its unsuccessful 2015 attempt to tie up with larger U.S. rival GM. Its share price jumped to record highs in August after reports of interest from China and Hyundai.
"We already buy components from (Hyundai) .... let’s see if we can agree on other points, especially for the development of transmissions and hydrogen,” Marchionne told journalists, adding there was "nothing to announce for the moment”.
Asked whether this collaboration could turn into a merger, Marchionne said: "I don’t believe so”.
The 65-year-old chief executive, whose mandate ends in April 2019, is working on a new business plan to 2022, which he said should be presented in the second quarter of next year.
As part of that strategy and to simplify its portfolio, FCA is working on separating two of its three components businesses.
Marchionne added that he would like to complete the separations by the end of 2018. The transaction could help boost FCA’s finances at a time when it is aiming to become cash-positive by the end of next year.
Source: Reuters
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