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Thread: Tariffs to hit FCA the hardest then followed by a possible take over by Hyundai

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    Lifetime Member Lifetime Member Tramonto's Avatar
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    Tariffs to hit FCA the hardest then followed by a possible take over by Hyundai

    Looks like FCA will take a beating on Tariffs.

    https://carbuzz.com/news/fiat-chrysl...import-tariffs

    Funny the above will just make it easier for Hyundai to launch a take over of FCA. This is the second time this has come up with Hyundai. In between these two you will recall that Hyundai teamed up with FCA for Hydrogen Fuel Cell development. Hyundai just announced a short time ago they were teaming up with Audi to develop Hydrogen Fuel Cell. Hyundai/KIA have been obtaining a lot of folks from Audi in the past few years. So who is sleeping with who here, its hard to keep all this straight. Almost sounds like a threesome. For sure Jeep, Dodge and Ram would make it along with Alfa and Maserati. Would not be surprised to see the Chrysler marque die. Not sure where Fiat would land in this picture since both KIA and Hyundai make small cars. Maybe they would just end up being the small car of the FCA dealers. This would make Hyundai the largest car manufacture in the world. It may surprise many to know that Hyundai Motor group finished in the top three for initial quality, Genesis, KIA, Hyundai. FCA could also learn a lot from Hyundai service department. I guess time will tell. Mean while back on the Ranch (my humble abode) Goober (thats me) will continue to drive his little Abarth with a big smile on his face with dreams and asperations of fixing it up and buying a 500L.

    https://carbuzz.com/news/audi-teams-...fuel-cell-tech

    https://carbuzz.com/news/is-hyundai-...-fiat-chrysler

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    Sounds like gossip to me. In Jan. of this year Sergio Marchionne said they are no longer looking for a merger partner ….

    "As the 65-year-old executive [Marchionne] prepares to hand over the reins to an internal successor next year, he said the improvements mean the company no longer needed a partner to survive.
    The carmaker has often been the subject of merger speculation, especially after its unsuccessful 2015 attempt to tie up with GM.
    "The necessity to find a partner, to try and guarantee our survival, going forward, is put to bed. I mean we're done," Marchionne told analysts on a post-results conference call."


    https://www.autoblog.com/2018/01/26/...d-in-earnings/

    We may not like the push to trucks/SUV's from cars but it has paid off big time for FCA, well enough where FCA is "on track to become debt free sometime this year" which puts FCA in a much better financial position than some of its bigger competitors.
    Last edited by rustbucket; 07-02-2018 at 11:02 PM.

  4. #3
    John Elkann quote on June 1st:
    “We’ve been with the company for over 100 years, Over 20 years’ involvement starting with Fiat SpA, I have never seen a brighter future. We wouldn’t envisage as a family to really put ourselves in a selling position.”

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    Member akcapfiat's Avatar
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    Small point, why add hyperbole to the situation; the article doesn't say FCA would be hardest it; it says it will be hard hit.
    Last edited by akcapfiat; 07-03-2018 at 05:43 PM.
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    It’s worth noting John Elkann also denied spinning off Ferrari until he put it on the table for the Agnelli family vote. He wasn’t going to change the brand name either until he pitched that idea to the family. I wouldn’t be surprised if he concocted a way for the Agnellis to hold 30% shares, as he did with Ferrari, and then pitched a sale of all or part of FCA. Many generations have been eating off the FIAT plate for a very long time, but the family has flirted with the idea of ditching the passenger car biz for some time. Finally, Agnelli and Marchionne denied seeking a merger with VW, but news later surfaced of a filed proposal. My fingers ar crossed for a solid range and sales strategy sooner than later. No brand can afford to lose marketshare in traditionally strong markets.
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  10. #6
    Quote Originally Posted by Amacento View Post
    It’s worth noting John Elkann also denied spinning off Ferrari until he put it on the table for the Agnelli family vote. He wasn’t going to change the brand name either until he pitched that idea to the family. I wouldn’t be surprised if he concocted a way for the Agnellis to hold 30% shares, as he did with Ferrari, and then pitched a sale of all or part of FCA. Many generations have been eating off the FIAT plate for a very long time, but the family has flirted with the idea of ditching the passenger car biz for some time. Finally, Agnelli and Marchionne denied seeking a merger with VW, but news later surfaced of a filed proposal. My fingers ar crossed for a solid range and sales strategy sooner than later. No brand can afford to lose marketshare in traditionally strong markets.
    True dat! At this point, I'm just taking the quote on face value. As always, it's never a dull moment!

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    Senior Member Amacento's Avatar
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    Quote Originally Posted by Fiat500USA View Post
    True dat! At this point, I'm just taking the quote on face value. As always, it's never a dull moment!
    Yes, brother... 'always something happening.
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    from the article:

    "Of the big three American automakers, FCA has the most to lose from these tariffs. 9% of FCA's sales come from vehicles imported from outside North America, compared to 6% and 4%
    for GM and Ford respectively."

    Another part I think most people aren't addressing is the proposed tariffs on imported parts. Take the Toyota Camry built in Kentucky, it still uses X amount of parts imported from Japan, so wouldn't those costs be passed on even though it has a huge percentage of US made parts in it?

    And would FCA really take a hit on tariffs, or wouldn't they pass those costs on to buyers with higher prices? If so, does that impact the bottom line of the companies or just hurt Americans in the wallet?

    Not trying to be political, but big business economics is probably way more complicated than my family budget.
    2013 Rosso Abarth with 61K miles, Koni yellow shocks, Madness springs, Neu-f rear sway bar, EBC Yellowstuff brake pads, DOT4 brake fluid, K&N air filter, autocross 17 inch Ciao Milano wheels with Bridgestone Potenza RE71R, daily wheels stock 16 inch Dunlop DZ102. 2017 1st place HS Tidewater Sports Car Club: 2016-2015 1st Place TSCC GS class; 2014-2013: 2nd place in SCCA South Carolina Region G Stock.
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    Quote Originally Posted by Robert Nixon View Post
    from the article:

    "Of the big three American automakers, FCA has the most to lose from these tariffs. 9% of FCA's sales come from vehicles imported from outside North America, compared to 6% and 4%
    for GM and Ford respectively."

    Another part I think most people aren't addressing is the proposed tariffs on imported parts. Take the Toyota Camry built in Kentucky, it still uses X amount of parts imported from Japan, so wouldn't those costs be passed on even though it has a huge percentage of US made parts in it?

    And would FCA really take a hit on tariffs, or wouldn't they pass those costs on to buyers with higher prices? If so, does that impact the bottom line of the companies or just hurt Americans in the wallet?

    Not trying to be political, but big business economics is probably way more complicated than my family budget.
    I don't take your post as political at all. The article is purely political if your post is.

    You make A LOT of good points. The so-called Trade War is real and, as is the case with every other type of war, the bystanders pay the biggest price for what is perpetrated by those at war with one another. FCA stands to lose the most among the "Detroit Three" because its tax shelter is abroad. I'm sure there will be some pass given due to the secondary HQ in the US. That's a game as well.

    The real question everyone who loves Italian econocars should ask themselves is do the Agnellis want this headache at all. We won't need to worry about rising FIAT-ABARTH prices if Hyundai buys them out. Hyundai has enough marketshare to eat (pretty much) whatever it takes to move units.
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