Fiat Chrysler CEO says in talks with Hyundai on tech partnership

ARESE, Italy (Reuters) – Fiat Chrysler Cars is in talks with South Korea’s Hyundai a couple of technical partnership, however there are not any merger talks between the 2, FCA Chief Government Sergio Marchionne mentioned on Saturday.

FILE PHOTO: FCA group CEO Sergio Marchionne speaks throughout the Alfa Romeo Sauber F1 Group presentation in Arese, close to Milan, Italy December 2, 2017. REUTERS/Alessandro Garofalo

FCA is usually the topic of merger hypothesis, particularly after its unsuccessful 2015 try to tie up with bigger U.S. rival GM. Its share value jumped to document highs in August after reviews of curiosity from China and Hyundai.

“We already purchase elements from (Hyundai) …. let’s see if we are able to agree on different factors, particularly for the event of transmissions and hydrogen,” Marchionne informed journalists, including there was “nothing to announce for the second”.

Requested whether or not this collaboration might flip right into a merger, Marchionne mentioned: “I don’t consider so”.

The 65-year-old chief government, whose mandate ends in April 2019, is engaged on a brand new marketing strategy to 2022, which he mentioned needs to be offered within the second quarter of subsequent 12 months.

As a part of that technique and to simplify its portfolio, FCA is engaged on separating two of its three elements companies.

Marchionne mentioned the spin-offs of Magneti Marelli – which makes elements for lighting, engines, electronics, suspension and exhausts – and robotics maker Comau could be separate operations, “particularly given Comau’s potential growth in synthetic intelligence or robotics”.

“Whether or not it occurs as a spin-off or a distribution to shareholders, or whether or not we’ll elevate some cash within the course of — all issues to be mentioned with the board, we haven’t made up our thoughts,” he mentioned.

These discussions embrace a possible itemizing for both firm as occurred with different items FCA spun off up to now, similar to tractor maker CNH Industrial or luxurious sportscar group Ferrari, that are quoted in Milan and New York.

Marchionne added that he wish to full the separations by the top of 2018. The transaction might assist enhance FCA’s funds at a time when it’s aiming to develop into cash-positive by the top of subsequent 12 months.

A separation of castings agency Teksid, the smallest of FCA’s elements makers, was not on the desk, Marchionne mentioned, including that any spin-off of the Alfa Romeo and Maserati manufacturers wouldn’t occur “for a few years”.

Requested about doable fines over diesel emissions, Marchionne mentioned he didn’t consider there was any authorized base in current allegations raised by French authorities.

He added that separate discussions with U.S. authorities had been ongoing and he expects “there will probably be a price however it will likely be one thing manageable”.

Reporting by Agnieszka Flak; modifying by Alexander Smith

Our Requirements:The Thomson Reuters Trust Principles.

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