In the recent years, the FCA CEO Sergio Marchionne has made it publicly known that the company he commands is up for grabs. An email was sent to GM CEO Mary Barra, but he didn’t even want to discuss the matter. After that, Marchionne wanted a cooperation between Volkswagen and the FCA, but it appears that not a single global carmaker wanted a partnership. According to Automotive News, several Chinese automakers are open to the opportunity, but FCA isn’t responding. What’s happening?
A major Chinese automaker wants to purchase the FCA for an above market value, but FCA refused because they considered the offer too low. We don’t know which Chinese carmaker made an offer, but according to Automotive News, there is more than one company interested in this investment. Reportedly, the FCA representatives met with Great Wall Motors in China, but also, Chinese officials were seen at FCA headquarters in Auburn Hills, Michigan.
The Chinese government founded local companies, which means that their goal is to spread across the world and one of the countries is the US. It has become clear that a Chinese automaker will start selling vehicles in the US and it is only a matter of time. If they manage to buy an already established brand, that will make it a whole lot easier at the beginning. The other company which is owned by a Chinese automaker Geely is Volvo, but their models aren’t as mainstream as the vehicles of these automakers.
If the Chinese company wants to move to the US, buying FCA is the best possible scenario. We are waiting for more details about this, but we are not sure how FCA will bring this to the public if the deal is clinched. Dodge, Ram and especially Jeep are all vehicles with a long history, and it wouldn’t be wise if they fell into the hands of a Chinese manufacturer. Note that FCA turned down the offer because there wasn’t enough money on the table, not because they didn’t like the idea. How much is a Chinese carmaker willing to offer?
