The Italian-American Fiat-Chrysler Automobiles (FCA) would be a prime target for a Chinese group, according to some industry experts.

The US automotive specialist Automotive News said earlier this week that representatives of a well-known Chinese carmaker, but not yet named, made at least one offer in July to acquire FCA "a bit above its current market value. Interviewed by AFP, the manufacturer has refused to comment, but it has grown strongly on the stock market, gaining nearly 10% since the publication of this information.

Automotive News said that the Chinese approaches were rejected by the Italian-American carmaker who considers them insufficient. "There will be no reconciliation but an acquisition in good standing," said Joseph Phillippi, president of Auto Trends Consulting. He reminds us that FCA has Jeep and Ram brands that are very popular in the United States. "FCA could also make small cars in China that would be quite competitive with FCA's design assistance," he adds.

FCA would not be the first renowned manufacturer to go under Chinese control. Swedish Volvo has been owned by Geely since 2010 and has seen strong growth in its results, with China now accounting for more than 20% of its sales. The first US manufacturer General Motors sells more cars in China than in the United States with 287,500 vehicles sold in July (226,100 in the United States) and more than two million since the beginning of the year. For its part, FCA sold 110,000 cars manufactured locally in the first six months of the year between April and June, notably thanks to a strong increase in sales of Jeep.

A response to the decline in US sales

Chrysler, before its takeover in 2009 by Fiat in bankruptcy, was one of the first American car manufacturers established in China with Jeep in the early 1980s. Given the current decline in sales in the US, an acquisition by a Chinese group could save Fiat-Chrysler including its Chrysler, Dodge and Fiat brands and could provide the means to develop its research and development activities.

The group, controlled by the Italian family of Agnelli, currently sells 4.5 million cars per year worldwide under the brands, Fiat, Chrysler, Jeep, Dodge, RAM, Alfa-Romeo and Maserati.
 

 

 

 

 

 

 

 

Ily Es

 Translator