Industry News: Geely Automotive Tried Taking Over Fiat Chrysler Automobiles

[William Maley]

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

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[David]

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.

[Drew Dowdell]

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

[ocnblu]

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.

[Drew Dowdell]

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

[FAPTurbo]

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 

[ocnblu]

6 hours ago, FAPTurbo said:

^^^ found the big government socialist 

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

[daves87rs]

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.....