South Korean car makers Hyundai and Kia posted sharp profit falls, while Fiat owners were reported to be eyeing financing for a possible tie-up with PSA Peugeot Citroen, according to Reuters. The severity of the crisis battering the industry globally was evident in results from Hyundai Motor Co and Kia Motors Corp , South Korea's top auto group, today as rising costs crushed margins, and cash-strapped consumers delayed major purchases. The weaker won may help the firms weather the industry storm. However, ratings agency Moody's said on yesterday it was placing both companies on review for possible downgrade in the light of the worsening outlook for global auto sales Meanwhile in Europe, where there were reports of further consolidation. Italian newspaper La Repubblica reported Fiat's founding family was considering a capital increase of around 2 billion euros ($2.6 billion) with an eye to a possible merger with France's PSA Peugeot Citreon. The news came two days after Fiat, due to report 2008 results later on Thursday, announced an alliance with struggling U.S. automaker Chrysler, seen as the weakest of Detroit's "Big Three".
