Fiat Chrysler boss flirts with Samsung in hunt for tech tie-up

FIAT Chrysler Automobiles chief executive Sergio Marchionne is looking into a tie-up with Samsung, as the Italian-American company widens its search for a technology partner to gird against being left behind in the race to develop self-driving cars.

Marchionne, who dropped his push for a merger with a fellow carmaker last year, has turned his attention to technology providers.

In March, he offered to assemble cars for Apple and in May announced a co-operation project with Alphabet’s Google on driverless vehicles. Amid discussions with Uber Technologies and Amazon, Samsung is the latest big-name technology company on Fiat’s radar.

“We have a very good relationship with Samsung, both as a supplier and as a potential strategic partner,” Marchionne said. He happens “to have a good relationship” with Samsung vice-chairman Lee Jae Yong because both serve on the board of Exor, Fiat Chrysler’s biggest shareholder.

As previouly reported, Samsung was in talks about buying some or all of Fiat’s car parts unit, Magneti Marelli, sources said. While Marchionne declined to comment on whether Samsung was a suitor, he seemed to be positioning the division as a carrot to woo a partner, noting that Magneti Marelli had drawn the interest of several potential buyers.

The talks between Fiat and Samsung on a deal had slowed recently over differences about the valuation of the businesses, South Korea’s Maeil Business Newspaper reported.

A partnership with a technology firm had taken on added importance for Marchionne after his efforts to merge with General Motors were rebuffed.

Fiat Chrysler is particularly exposed to changes in the automotive market because of its small size compared with competitors. – Bloomberg