Earlier this week, Chinese automaker Great Wall announced its intentions of possibly buying Jeep. It was hoping to make contact with Fiat Chrysler Automobiles about starting negotiations. But just a day later, Great Wall has poured a bucket of cold water on their plans.
In a recent filing to the Shanghai stock exchange, Great Wall said there are “big uncertainties” with FCA and isn't sure if it will continue investigating it. The company also stated they have not made any contact with Fiat's board.
"The company has not built any relationship with the directors of FCA nor has the company entered into any discussion or signed any agreements with any officer of FCA so far," Great Wall said in the filing.
On this news, Great Wall's share price went into freefall on Tuesday that the Shanghai stock exchange put a halt on trading.
Analysts find it hard to see FCA selling Jeep alone, as it is the crown jewel in their lineup. There are also the concerns of getting government approval. A recent report from Deutsche Bank AG said Great Wall could run into issues with getting approval from the Chinese government as restrictions have been placed on capital outflow. There is also the political ramifications in the U.S. due to President Donald Trump.