Fiat Chrysler Automobiles (FCA) is reportedly in talks with Hyundai over a technical partnership, but there are no merger talks between the two, according to reported remarks by FCA CEO Sergio Marchionne.
Reuters reported that Marchionne said the two could work on the ‘development of transmissions and hydrogen’ but said there is ‘nothing to announce for the moment’. He also told journalists that he did not believe the collaboration could turn into a merger.
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Reuters noted that Marchionne is working on a new FCA 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 (including Magneti Marelli).
Marchionne also reportedly said that he would like to complete the separations by the end of 2018. The heavily indebted company is aiming for a big financial boost from the sale of some parts of its operations.
In the past, Marchionne has forcefully made the case for bigger car companies and alliances able to exploit economies of scale and be more competitive globally. However, he was rebuffed by General Motors when he suggested a merger of the pair two years ago.
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By GlobalData
