But a meeting took place, allegedly.
Reports earlier this week brought to light the possible acquisition of Fiat-Chrysler Automobiles by a Chinese automotive conglomerate. It’s been little secret that FCA boss Sergio Marchionne has been revising and refining his company to make it lucrative for buyers, but it seems that his best efforts have not impressed one of the most lucrative buyers of them all: Geely.
To provide some context, Geely has been a great source of pride for the Chinese administration, riding off the success of Geely’s immensely successful turnaround of Swedish luxury carmaker Volvo since its acquisition in 2010. Geely was among suitors like Dongfeng, Guangzhou, and Great Wall Motors, all pipped to make a bid for FCA at some point in the future.
Speaking to the media, Geely executive director Gui Sengyue denied the company’s interest in FCA, though he didn’t rule it out entirely. “We don’t have any such plan at the moment,” he said, while making clear that such an acquisition would be a wise move for those interesting to “fast track their development.”
In contrast, a report from Reuters says a source suggested that Geely and FCA had had meetings in 2016, though the purpose and intent of those meetings are still unclear. The Chinese company may have been interested in FCA at the time, however it appears that they are now throwing their weight behind PROTON and Lotus following their acquisition earlier this year.
Without Geely on the list, there’s an opportunity ripe for the taking here for any of the other Chines companies in the running. It’s been suggested that Guangzhou and Great Wall Motors are both very keen on an FCA acquisition, but are weighing their options and doing their due diligence, as such a purchase would likely have to endure stiff competition in the US of A.
It’s estimated that FCA is worth about US$20-million (or about $25.2-million in our money), with potential deals ranging from the full purchase of the company and all of its subsidiaries, to individual purchases of brands like Jeep, or Fiat. Luxury Italian marques Alfa Romeo and Maserati are to be left out of this though, with a source within FCA saying that those two companies are intended to be spun off to maximise profit for FCA’s majority shareholder, the Agnelli family.
Stay tuned to CarShowroom as we bring you more information as it comes.
