FCA In Partnership Talks with Hyundai

Fiat Chrysler Automobiles NV says it is in talks with Hyundai Motor Co. about forming a non-equity technology alliance.

CEO Sergio Marchionne tells reporters the partnership would pursue innovations in such areas as transmissions and hydrogen fuel cells. Hyundai already supplies some components, including gearboxes, to FCA’s operations in the U.S.

Although he is a strong proponent of consolidation in the auto industry, Marchionne rules out a merger between FCA and Hyundai. He does confirm that FCA aims to either spin off its Comau robotics operations and Magneti Marelli parts business as separate companies or distribute their ownership to existing FCA shareholders by the end of 2018.

Marchionne, 65, is slated to retire as CEO in April 2019. He is developing a business plan for the company for the period through 2022 and plans to present it next spring.