China’s Great Wall Motors interested in buying Jeep brand from Fiat? FCA says no bid received
It was reported yesterday that Fiat Chrysler was approached by China's Great Wall Motors for the purchase of Jeep brand.
Yesterday, a report stated that Chinese automaker Great Wall Motors is keen on buying Jeep brand from Fiat Chrysler Automobiles (FCA), USA. The report also added that, if possible, Great Wall is willing to buy FCA. This resulted in FCA share prices rise 8.5% in the stock market.
On the other hand, a move such as this could give rise to political opposition in the US, especially considering the current political environment and cause some angst among company workers.
As per the report, it is yet to be confirmed whether Great Wall is actually targeting FCA or just its Jeep brand which would be a major buy for the Chinese automaker. Jeep brand in China have been seeing increased demand where they are produced through a joint venture with Guangzhou Automobile Group.
Fiat Chrysler Chief Sergio Marchionne has also revealed his intention of another merger and with no automakers in either Europe or the US showing much interest, he has set his sights on the Far East. Among those buyers showing interest are Guangzhou, Geely, Dongfeng, and Great Wall.
FCA has 162 manufacturing plants across the globe along with 87 R& D facilities and a total of 2,600 showrooms in the US. It is also reported that the Chinese automakers have met with representatives of the company for a takeover though no formal offer has been made yet. As per some reports, the FCA takeover news could be announced any time this week.
Adam Jones, analyst at Morgan Stanley has pegged Jeep worth at $33.5 billion which is more than the rest of FCA. Despite this high worth, Great Wall Motors is sure of raising enough funds to make an acquisition offer.
Responding to this report, Fiat Chrysler revealed the following statement – In response to market rumors regarding a potential interest of Great Wall Motors in the Jeep brand, Fiat Chrysler Automobiles (“FCA”) (NYSE: FCAU MTA: FCA) confirmed that it has not been approached by Great Wall Motors in connection with the Jeep brand or any other matter relating to its business.”
“FCA is fully committed to its 2014-18 plan, having achieved each one of its targets to date and with only 6 quarters left to its completion.”