Is a Chinese car company interested in buying Jeep?
08-23-17, 06:10 PM
#1
Lexus Champion
Thread Starter
Is a Chinese car company interested in buying Jeep?
Some really interesting goings-on with FCA and its interest in spinning off its various units, but Jeep seems to be mentioned here. Three days ago a Chinese car company says it was interested in an outright purchase, but now it has reversed itself. Great Wall Motor Company, which builds SUV's in China. I think it's the stock market and its various shenanigans, but it doesn't mean something is not going on behind the scenes.
You buy a Volvo from a Chinese company, maybe you'll buy a Jeep from a Chinese company.
http://www.telegraph.co.uk/business/...ase-jeep-fiat/
You buy a Volvo from a Chinese company, maybe you'll buy a Jeep from a Chinese company.
Speculation that Great Wall Motor Company will attempt to buy Fiat Chrysler’s Jeep marque has been dampened down by the Chinese automotive business. In a statement to the Shanghai stock exchange, Great Wall said it had not held any talks with FCA, adding that its approaches had “not generated concrete progress as of now”.
Just one day after the company said “there is an intention to make the purchase”, Great Wall rowed back, noting there were “big uncertainties” surrounding any potential deal.
Sergio Marchionne, boss of FCA, last month fuelled speculation about a possible break-up of the Italian-American car company, saying he was examining whether to spin off some of its businesses.
08-24-17, 07:05 AM
#2
Lexus Fanatic
iTrader: (20)
interesting... hard to see why fiat would sell jeep when it's doing so well.
08-24-17, 07:08 AM
#3
Lexus Fanatic
I don't think China has anything to do with it at the consumer level, meaning a Buick Envision is built in China, but as far as anyone is concerned, it's an American car, you buy genuine (aka OE) GM parts, they are made in China....they would buy it if the price were attractive would make sense...
08-24-17, 07:20 AM
#4
Lexus Champion
Sergio Marchionne's obsession is to consolidate automakers worldwide into a handful of large conglomerates, like GM, Ford, VW and Toyota. He believes that smaller manufacturers, including Fiat-Chrysler, cannot survive in the long-run without these mergers. So he has tried to sell FCA off to GM and Volkswagen, both of which said no. It would seem logical to try to sell off FCA (or perhaps bits and pieces until there is nothing left) to the Chinese.
08-24-17, 08:22 AM
#5
Lexus Fanatic
iTrader: (20)
interesting. so basically you're saying he wants fca to go away. he'll probably make a shatpile of money out of the deal and retire...
08-24-17, 01:30 PM
#6
Lexus Fanatic
Sergio Marchionne's obsession is to consolidate automakers worldwide into a handful of large conglomerates, like GM, Ford, VW and Toyota. He believes that smaller manufacturers, including Fiat-Chrysler, cannot survive in the long-run without these mergers. So he has tried to sell FCA off to GM and Volkswagen, both of which said no. It would seem logical to try to sell off FCA (or perhaps bits and pieces until there is nothing left) to the Chinese.
I don't see how FCA can be considered a "smaller" manufacturer.
Not only does it include all of Chrysler/Dodge/Jeep/Ram (which, in itself, is a pretty good-sized corporation, with four divisions), but also Fiat and several other Italian brands. Fiat, though relatively small in the U.S., is huge in Europe, along with VW and Renault.
08-24-17, 01:46 PM
#7
I don't see how FCA can be considered a "smaller" manufacturer. Not only does it include all of Chrysler/Dodge/Jeep/Ram (which, in itself, is a pretty good-sized corporation, with four divisions), but also Fiat and several other Italian brands. Fiat, though relatively small in the U.S., is huge in Europe, along with VW and Renault.
Not only does it include all of Chrysler/Dodge/Jeep/Ram (which, in itself, is a pretty good-sized corporation, with four divisions), but also Fiat and several other Italian brands. Fiat, though relatively small in the U.S., is huge in Europe, along with VW and Renault.Trending Topics
08-24-17, 04:23 PM
#8
Lexus Champion
Thread Starter
It might be that Marchionne's machinations IMO are driven by FCA not being as profitable as the other global manufacturers and it's carrying a lot more debt (4.2B Euros). As Sulu mentioned, he's been trying to find a western suitor for quite awhile and nobody bit. And as Bitkahuna also stated, it's rather counter-intuitive to sell your most profitable brands.
But his playbook seems to sacrifice a profitable brand for the big cash infusion and pay down the debt thereby getting the core company down to a better debt/equity balance. And he did do this with Ferrari back in 2015 which worked out pretty nicely for the company. Apparently he's interested in getting rid of Alfa Romeo and Maserati as a single sale too. He's maybe thinking Jeep on its own and don't know what he'd do with Ram. The Chinese are definitely interested in Jeep to fill their exploding SUV craze.
But his playbook seems to sacrifice a profitable brand for the big cash infusion and pay down the debt thereby getting the core company down to a better debt/equity balance. And he did do this with Ferrari back in 2015 which worked out pretty nicely for the company. Apparently he's interested in getting rid of Alfa Romeo and Maserati as a single sale too. He's maybe thinking Jeep on its own and don't know what he'd do with Ram. The Chinese are definitely interested in Jeep to fill their exploding SUV craze.
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