Jump to content
  • Greetings Guest!

    CheersandGears.com was founded in 2001 and is one of the oldest continuously operating automotive forums out there.  Come see why we have users who visit nearly every day for the past 16+ years. Signup is fast and free, or you can opt for a premium subscription to view the site ad-free.

William Maley

Industry News: Geely Automotive Tried Taking Over Fiat Chrysler Automobiles

Recommended Posts

Geely Automotive's chairman Li Shufu made headlines last week by dropping $9 billion for 9.69% stake in Daimler AG, making him the biggest shareholder in Mercedes-Benz's parent company. This follows a trend by Geely in buying automakers (Volvo in 2010, a 51 percent stake in Lotus last year). But a new report from Bloomberg reveals Shufu had his eye on a possible bigger prize.

Last year, Shufu approached Fiat Chrysler Automobiles about "a potential takeover". According to people familiar with the matter, Geely and FCA held informal talks. Nothing would come to fruition however as the two disagreed on how much FCA would be worth after the completion of the current five-year plan - expected to end this year. At the time of Bloomberg's report, FCA had a market cap value of 27 billion euros (about $33 billion).

FCA and Geely declined to comment on Bloomberg's report.

Back in August, Automotive News broke the news that various Chinese automakers were interested in possibly acquiring FCA. In fact, one unnamed automaker submitted a bid, but was rejected by FCA for being to low. At the time, Automotive News didn't mention the automaker in question, but Bloomberg's report possibly puts Geely as the one. 

Later that month, Chinese automaker Great Wall said they were interested in purchasing Jeep, although plans for this would fall apart.

Source: Bloomberg


View full article

Share this post


Link to post
Share on other sites

I would take Geely as owner for the American brands over Fiat. I could see Geely kill off chrysler or use it to bring in their own rebadged Geely auto's. Fiat I can see being killed off and even Alfa if Geely did buy them.

My gut tells me the debt load that FCA is carrying is the main reason for a low offer by Geely and FCA wants to ignore the truth of how indebted they are.

Share this post


Link to post
Share on other sites

If Geely could do for Dodge/Chrysler/Jeep/Ram what they did for Volvo.... yes I would definitely take them over Fiat. 

  • Upvote 2

Share this post


Link to post
Share on other sites

This is a national security concern.  We need to keep control of our industrial giants in case of war or some other event.  The fact that Italians run Chrysler pains me enough as it is.

Share this post


Link to post
Share on other sites

We need to fund a Kickstarter to buy Chrysler/Dodge/Jeep/Ram and make Ralph Gilles CEO

  • Like 3
  • Upvote 1

Share this post


Link to post
Share on other sites
3 hours ago, ocnblu said:

This is a national security concern.  We need to keep control of our industrial giants in case of war or some other event.  The fact that Italians run Chrysler pains me enough as it is.

^^^ found the big government socialist 

  • Haha 2

Share this post


Link to post
Share on other sites
6 hours ago, FAPTurbo said:

^^^ found the big government socialist 

:o  Oh look, a foreign agent tryna fill our heads with propaganda

  • Haha 2

Share this post


Link to post
Share on other sites
20 hours ago, Drew Dowdell said:

If Geely could do for Dodge/Chrysler/Jeep/Ram what they did for Volvo.... yes I would definitely take them over Fiat. 

Think pretty much anyone could be better than Fiat.....

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By William Maley
      Rumors of a possible buyer for Fiat Chrysler Automobiles have popped up again. Late last week, the Asia Times learned from sources that Hyundai Motor Group CEO Chung Mong-koo is waiting for "an expected decline" in shares of FCA before launching a takeover bid attempt. This is expected to launch sometime between the summer and "prior to the Fiat-Chrysler annual shareholders’ meeting in May 2019."
      Reportedly, FCA CEO Sergio Marchionne drew Hyundai's attention by using interest from Great Wall Motor.
      The deal is being spurred by Paul Singer, the principal of Elliott Management. Singer made headlines in April by pressuring Hyundai to merge with Mobius, their parts' division to create a new holding company and demanded the company to pay investors more than $10 billion in “excess cash.”
      Marchionne has been trying his damnedest to try and find a merger partner for the past few years.
      Tried to work with General Motors CEO Mary Barra about possibly merging the two companies in 2015, but was turned down. Rumors about possibly merging with Volkswagen, but was told no. Various Chinese automakers considered bidding on FCA, but most deny it. Great Wall was considering only purchasing Jeep. However, plans for this were put on ice Here is the question we find ourselves wondering about, why would Hyundai consider buying FCA? Aside from getting their hands on Jeep and Ram Trucks (FCA's money makers), FCA would be gaining the most from this possible deal.
      To throw another wrench into this, Hyundai is currently in the midsts of a reorganization effort and part of that includes possibly replacing Mong-koo who is 80 years old.
      Both FCA and Hyundai declined to comment.
      Source: Asia Times
      Thanks @regfootball for the news tip

      View full article
    • By William Maley
      Rumors of a possible buyer for Fiat Chrysler Automobiles have popped up again. Late last week, the Asia Times learned from sources that Hyundai Motor Group CEO Chung Mong-koo is waiting for "an expected decline" in shares of FCA before launching a takeover bid attempt. This is expected to launch sometime between the summer and "prior to the Fiat-Chrysler annual shareholders’ meeting in May 2019."
      Reportedly, FCA CEO Sergio Marchionne drew Hyundai's attention by using interest from Great Wall Motor.
      The deal is being spurred by Paul Singer, the principal of Elliott Management. Singer made headlines in April by pressuring Hyundai to merge with Mobius, their parts' division to create a new holding company and demanded the company to pay investors more than $10 billion in “excess cash.”
      Marchionne has been trying his damnedest to try and find a merger partner for the past few years.
      Tried to work with General Motors CEO Mary Barra about possibly merging the two companies in 2015, but was turned down. Rumors about possibly merging with Volkswagen, but was told no. Various Chinese automakers considered bidding on FCA, but most deny it. Great Wall was considering only purchasing Jeep. However, plans for this were put on ice Here is the question we find ourselves wondering about, why would Hyundai consider buying FCA? Aside from getting their hands on Jeep and Ram Trucks (FCA's money makers), FCA would be gaining the most from this possible deal.
      To throw another wrench into this, Hyundai is currently in the midsts of a reorganization effort and part of that includes possibly replacing Mong-koo who is 80 years old.
      Both FCA and Hyundai declined to comment.
      Source: Asia Times
      Thanks @regfootball for the news tip
    • By William Maley
      Since 2014, Fiat Chrysler Automobiles CEO Sergio Marchionne proclaimed that Jeep needed a three-row luxury SUV to better compete with the likes of the Cadillac Escalade and Lincoln Navigator. But this SUV, known as the Grand Wagoneer hasn't materialized. Numerous delays and debates about the design has caused the launch to be pushed time and time again. These delays have a number of dealers concerned that Jeep may miss its opportunity with this new model.
      "I think our window of opportunity is closing. We could have killed with [the Grand Wagoneer] if it had been available when they first told us about it, but it's a much tougher sell with interest rates and gas prices going up," said an unnamed FCA dealer to Automotive News.
      John Murphy, research analyst at Bank of America Merrill Lynch said last week at a meeting of the Automotive Press Association that the "Goldilocks" era in auto retailing was coming to a close. Murphy said the next five years would be tough on auto sales due to a number of factors, especially for those trying to sell high-end models.
      Higher interest rates Increasing gas prices Raw materials becoming more expensive Increasing competition in the light-truck sector The current plan is to launch the Grand Wagoneer in 2019, but production could be pushed back till late in the year or even into 2020. This is due to FCA's plan to keep building the current Ram 1500 at their Warren Truck Plant until the end of year. But depending on demand, this could extend production into 2019, pushing back the time needed to retool the plant for the Grand Wagoneer.
      Source: Automotive News (Subscription Required)

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.