FCA Rejects Takeover Offer By Chinese Suitors
15 August 2017 - motor1
More offers from Chinese automakers may soon be on the table.
After a little over two years on the market, FCA might finally have a buyer. It was recently reported that an unnamed Chinese automaker has expressed serious interest in a takeover of FCA, rumors suggest it was the well-known Guangzhou Automobile Group, or GAC.
According to Automotive News, representatives of the Chinese automaker made a serious bid earlier in the month, offering a premium over FCA's market value. Ultimately the offer was rejected, but more than one Chinese auto giant is in the market for the company.
Separate reports suggest that representatives from the Great Wall Motor Company have traveled to FCA's Auburn Hills, Michigan headquarters to discuss the possibility of a takeover. Along with Great Wall, Dongfeng Motor Corp., Zhejiang Geely, and the aforementioned Guangzhou Automobile Group are reportedly among the interested suiters, though it's still unclear which of the companies intend to follow through with an offer.
Already GAC partners with FCA in the marque's joint venture in China, producing vehicles like the Fiat Viaggio, Jeep Cherokee, and the recently introduced Jeep Yuntu concept, pictured here. The FCA sale would include the brands Jeep, Ram, Chrysler, Dodge, and Fiat, but would exclude Maserati, Alfa Romeo, and Ferrari. The three brands would reportedly be spun off in an effort to boost returns for the holding company controlled by the Agnelli family, Exor.
"The only one who would have the money (and reason) to take over Fiat Chrysler Automobiles would be China," said analyst David Sullivan from AutoPacific. "The Chinese seem more enthralled than anyone else."
Last year FCA raked in a revenue of €111.018 billion with a profit of €1.814 billion. The group employs more than 225,000 people around the world, and operates in four different regions, making it the seventh largest automaker in the world.