Great Wall automaker says watching Fiat Chrysler; no talks yet
Chinese firm wants all or part of Italian-American brand
A specialist trader works at the post where Fiat Chrysler Automobiles is traded on the floor of the New York Stock Exchange (NYSE) in New York, US. PHOTO: REUTERS
HONG KONG/SHANGHAI:
Chinese automaker Great Wall Motor Co Ltd reiterated its interest in Fiat Chrysler Automobiles NV on Tuesday, but said it had not held talks or signed a deal with executives at the Italian-American automaker.
China’s largest sport utility vehicle (SUV) manufacturer made a direct overture to Fiat Chrysler on Monday, with an official saying the company was interested in all or part of FCA, owner of the Jeep and Ram truck brands.
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Automotive News first reported the news, quoting Great Wall Motor President Wang Fengying as saying she planned to contact FCA to discuss acquiring the Jeep brand specifically. Those comments sent FCA shares higher - but also raised questions over the ability of China’s seventh-largest automaker by sales to buy larger Western rival FCA, or even Jeep, which some analysts value at as much as one-and-a-half times FCA.
Great Wall sought to dampen speculation on Tuesday. It confirmed it had studied Fiat Chrysler, but said there was “no concrete progress so far” and “substantial uncertainty” over whether it would eventually bid.
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“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,” the company said in an English-language stock exchange filing.
It did not give further detail. Fiat Chrysler stock dipped on the statement on Tuesday.
Great Wall said trading in its Shanghai-listed shares would resume on Wednesday after having been suspended. Fiat Chrysler declined to comment on Great Wall’s statement.
On Monday, it said it had not been approached and was fully committed to implementing its current business plan.
Published in The Express Tribune, August 23rd, 2017.
Chinese automaker Great Wall Motor Co Ltd reiterated its interest in Fiat Chrysler Automobiles NV on Tuesday, but said it had not held talks or signed a deal with executives at the Italian-American automaker.
China’s largest sport utility vehicle (SUV) manufacturer made a direct overture to Fiat Chrysler on Monday, with an official saying the company was interested in all or part of FCA, owner of the Jeep and Ram truck brands.
Auto part makers seek removal of regulatory duty
Automotive News first reported the news, quoting Great Wall Motor President Wang Fengying as saying she planned to contact FCA to discuss acquiring the Jeep brand specifically. Those comments sent FCA shares higher - but also raised questions over the ability of China’s seventh-largest automaker by sales to buy larger Western rival FCA, or even Jeep, which some analysts value at as much as one-and-a-half times FCA.
Great Wall sought to dampen speculation on Tuesday. It confirmed it had studied Fiat Chrysler, but said there was “no concrete progress so far” and “substantial uncertainty” over whether it would eventually bid.
Auto industry seeks tax relief at retail stage
“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,” the company said in an English-language stock exchange filing.
It did not give further detail. Fiat Chrysler stock dipped on the statement on Tuesday.
Great Wall said trading in its Shanghai-listed shares would resume on Wednesday after having been suspended. Fiat Chrysler declined to comment on Great Wall’s statement.
On Monday, it said it had not been approached and was fully committed to implementing its current business plan.
Published in The Express Tribune, August 23rd, 2017.