[autorahul]

Hyundai is reportedly in talks to buy FCA group. If it goes through, iconic brands like Maserati amongst others will become part of the Korean giant.

Source

This could also mean some very interesting things for India. Demand for Compass was high despite it being part of Fiat network. If Hyundai network starts supporting it, the demand would go through the roof!

Below are the list of brands whose future could be Korean

[vsrivatsa]

Originally Posted by autorahul

This could also mean some very interesting things for India. Demand for Compass was high despite it being part of Fiat network. If Hyundai network starts supporting it, the demand would go through the roof!

This would be a good move for Hyundai. Not sure what the existing owners of Jeep Compass feel about it though. I guess many went to the Compass as a Step Up from Creta and "Jeep" was considered more Premium in the typical Indian mindset as compared to "Hyundai"...

[CrAzY dRiVeR]

It's always been public that Sergio Marchionne has been desperate to sell off different sub-brands under the FCA alliance, or to enter into a major partnership with a big company like Hyundai.

So this looks very much possible.

Will they be selling all the different brands within FCA? That remains to be seen - FCAs recent presentation made it very clear that they were willing to let go of some brands, but were keen to retain and focus all their energies on brands like Jeep, Ram, Alfa Romeo and Maserati.

My guess? Fiat, Chrysler, Dodge, Magneti Marelli and Lancia could be up for sale, and yes - that would leave FCA without the title brands - effectively ending FCA as we know it.

But not sure how would Hyundai really benefit from these brands. FIAT only remains strong in Brazil and few developing countries, and the other brands have been rather limited to paper tigers under Marchionne.


Edit -

I guess this explains why Hyundai is interested in FCA.

If Hyundai and FCA did enter into a merger deal, it would make the resulting company the world’s largest automotive group.

Originally Posted by vsrivatsa

I guess many went to the Compass as a Step Up from Creta and "Jeep" was considered more Premium in the typical Indian mindset as compared to "Hyundai"...

That's even with the same pathetic dealership network coverage as the old FIAT. Wonder how people got so much of confidence really to pay up 25L or more on the brand. Shows the brand and product pull is really up there and capable of more.

Things are only going to get much better with Hyundai backing. However, i doubt it as mentioned above.

[The Brutailer]

As long as they don’t tamper with the engineering prowess of Fiat, honestly I don’t mind who buys them. Better for them to exist under someone else than to not exist at all.

I’ll repeat my first point of view again. Please don’t dilute the brand Fiat. In India especially, they are the only ones making a true driver’s car. Volkswagen might make better quality cars but it’s Fiat which puts the driving pleasure over everything else.

And Hyundai is the total opposite of that.

[GTO]

What a surprise! Man, the auto industry is the best one to cover. There is never a week gone by without surprises.

Frankly, Fiat is weak and so is Chrysler. Only some of its brands (like Jeep, Ram trucks) stand out as being valuable. But still, FCA comes with a lot of baggage. Hyundai is so fast & lean these days. I'm wondering if taking over such a complicated partner will slow Hyundai down. Sergio will only be too willing though. Heck, he's so desperate that he'd even agree to a tie-up with Sipani Motors .

Hyundai did take over Kia and turn it into a success story, but Kia was a small Korean company at the time. This is an entirely different ballgame. If at all the rumour is true, I expect Hyundai to strip FCA completely, and only retain the crown jewels (Jeep, Maserati, Dodge Ram...). The Koreans aren't known to waste their time on non-performing assets.

[SmartCat]

Originally Posted by GTO

Frankly, Fiat is weak and so is Chrysler.

I just looked up the numbers. FCA seems to have decent financial strength -

$133 billion revenues
$ 4 billion profits
$30 billion valuation (market cap)

Hyundai Motors' numbers -

$90 billion revenues
$4.2 billion profits
$25 billion valuation (market cap)

If it goes through, it will probably be a merger

[CrAzY dRiVeR]

Originally Posted by The Brutailer

Fiat which puts the driving pleasure over everything else.

And Hyundai is the total opposite of that.

This story is just too old now. The last FIAT model in India was launched a decade ago.

With the N division - specially the i30N that is giving the hot hatches a run for their money, Hyundai has gone far ahead internationally. Even the Abarth range is so old now that it can't even compete with the Hyundai. Lets not even bring the Stinger GT into the equation.

And things haven't been all that different in India as well. While the Hyundai cars can't be called sporty yet - they've really come a long way. The current generation Verna, Creta or Elite i20 for example have very mature ride and handling setups as against their predecessors. Its only a matter of a generation or so before they start mastering the art. And then they have very competent petrol and diesel engines to match too.

With India being declared as one of the regional headquarters of Hyundai, and Hyundai itself being a far more aggressive company than FIAT - the market stands a much better chance of getting good cars with the Korean.

Koreans are improving way too fast, even in driving dyamics, whereas the Italians have been grossly sleeping over their assets in the past decade.

Originally Posted by smartcat

I just looked up the numbers. FCA seems to have decent financial strength -

Any idea what the numbers are, brand wise? I believe they had mentioned that last year profits were mainly from premium SUVs - the reason why the next five year plan mainly revolves around Jeep.

[IshaanIan]

This is a great move IMO. What the FCA group definitely needs is some better quality control across the board, fewer confused offerings, products that stand a better chance at capturing the market, and some spare change to develop less embarrassing proper luxury offerings under the Maserati name. Hyundai could also definitely benefit from some massive doses of character and soul. This might just be a match made in heaven no matter how odd it may seem.

It sure is interesting to see these partnerships happen in the auto industry as manufacturers all begin to gear up for what may just be the final leg of private transport which inevitably will be electric. VAG group has made an interesting purchase of 10 percent of Rimac Automobili through their hero company Porsche, Tesla is still awaiting clear competition, Dyson of all companies is said to be readying themselves to take on the automotive market. I wonder what will come of little Japanese brands like Subaru, Mitsubishi, Suzuki and Mazda. I do hope they are thinking long term as well and don't slip through the cracks of such fast paced progress in this sector.

[SmartCat]

Originally Posted by IshaanIan

and some spare change to develop less embarrassing proper luxury offerings under the Maserati name.

Surprise. Maserati brought €4 billion revenues in 2017.

Originally Posted by CrAzY dRiVeR

Any idea what the numbers are, brand wise? I believe they had mentioned that last year profits were mainly from premium SUVs - the reason why the next five year plan mainly revolves around Jeep.

Looked up the annual report and some brokerage reports. FCA does not give brand breakup as such - except for Maserati.

Components business (mostly Magneti Marelli): €10 billion revenues
Maserati: €4 billion
Rest of the brands: €96 billion

One Morgan Stanley report suggests Jeep brand alone contributed 75% of its profits. Jeep accounts for 50% of FCA's unit sales.

[The Brutailer]

Originally Posted by CrAzY dRiVeR

This story is just too old now. The last FIAT model in India was launched a decade ago.

Doesn’t mean it’s not true. And in this age of giving comfort and ‘ease of use’ being given more preference, old is not necessarily a bad thing. Name one car which matched the dynamics, steering feel, engine and overall liveliness of the Abarth Punto? Even TSI which is a great piece of engineering is not exactly a enthusiast’s car with this soft ride and dead steering.

As a enthusiastic motorist, I’d never buy a Hyundai. Never! They have improved but are still miles behind the Europeans. No offence to the owners.

But again tbh, they really need to improve the after sales. Which is why I support the alleged merger. Would be glad if Hyundai learns a thing or two from Fiat.

[GTO]

Originally Posted by smartcat

I just looked up the numbers. FCA seems to have decent financial strength

I meant more in terms of model strength, future tech readiness, worldwide presence & competence (Fiat is primarily Europe, Chrysler is USA) etc.

Originally Posted by The Brutailer

As a enthusiastic motorist, I’d never buy a Hyundai. Never!

Never say never . Look up some Kia Stinger reviews - many have fallen in love with it. Also check out which car is currently leading a poll of BHPians - link.

[vsrivatsa]

Originally Posted by CrAzY dRiVeR

Things are only going to get much better with Hyundai backing. However, i doubt it as mentioned above.

My statement was purely with respect to the Jeep brand and not the other sub brands within FCA.

Hyundai does not have any star performers in segments above 20 Lakhs - Tucson sells in the 150-200 range and Elantra also sells in the same range.
Access to a blockbuster hit such as Jeep Compass which does 1500 to 2000 units a month is an extremely valuable addition to Hyundai. Profit margins would be huge in that segment.

I would not rate the Jeep Service so bad as called out with their recent history where they are supposed to have offered to replace a Jeep Compass vehicle which suffered a failure : URL

No doubt the service network reach would increase if Hyundai were to buy FCA.

[Arjun Reddy]

Shocked: Opposites attract. It will be a love story with a sad ending for the enthusiasts.

Do not get me wrong, Hyundai has come a long way from where they were, but again the passion especially from the driver's seat is totally missing.

Imagine a Jeep or a Fiat with a Hyundai steering. If Hyundai keeps these brands with the same engineering and use this to better their products it will be a win - win.

Mopar coupled with Hyundai service network will be the biggest winner.

[Viraj_Guru]

According to media Hyundai is reportedly seeking to buy all of Fiat Chrysler Automobiles in a potential deal that could see the Italian-American automaker sold before CEO Sergio Marchionne retires next year.

Hyundai CEO Chung Mong-koo is waiting for an expected decline in Fiat Chrysler Automobiles shares before launching a takeover bid.

Source : Asia Times

[MotorPaandi]

There are reports that Hyundai might acquire FCA including Jeep & Dodge.

https://www.financialexpress.com/aut...maker/1226236/