Dongfeng, Geely, and Guangzhou Shy Away from FCA PurchasePosted in News on August 18, 2017
Three automakers put distance between themselves and a rumor that Fiat Chrysler Automobiles was being courted by a Chinese automaker. Dongfeng Motor Group, Geely Automotive Holdings, and Guangzhou Automobile Group each stated in separate announcements that they were not interested in purchasing the Italian-American car manufacturer famous for its Jeep and Ram brands.
We previously reported on an Automotive News story that stated FCA had rejected a purchase offer from an unknown Chinese automaker. The report named the three aforementioned Chinese automakers, as well as Great Wall Motors. Furthermore, a source suggested that unnamed Chinese companies had conducted due diligence regarding the purchase of FCA, and that executives from FCA had visited China to meet with Great Wall.
Does that mean the purchase offer came from that company? Neither Great Wall nor FCA has disclosed the details of the rejected deal, which came at a small premium over FCA’s market value.
According to Automotive News, the Chinese government is pressuring companies to expand into other markets, leading automakers to seriously consider FCA as a global partner. Its globally successful Jeep brand might make the company very attractive to entities looking to enter markets as diverse as Japan, Brazil, and the United States.