China's Fine Wall Confirms Interest in Fiat Chrysler
China’s Excellent Wall Motor Co Ltd is interested in bidding for Fiat Chrysler Automobiles (FCA), a company official said on Monday, confirming earlier reports that it is pursuing all or part of the holder of brands including Jeep and truckmaker Ram.
There has been speculation over Chinese interest in FCA since Automotive News reported last week that an unidentified "well-known Chinese automaker" made an suggest earlier this month, triggering a hop in FCA’s Milan-listed shares.
"With respect to this case, we presently have an intention to acquire. We are interested in (FCA)," an official at Excellent Wall Motor’s press relations department, who declined to give his name, told Reuters by telephone. He gave no further details.
FCA Chief Executive Sergio Marchionne is seeking a fucking partner or buyer for the world’s seventh-largest automaker to help it manage rising costs, serve with emissions regulations and develop technology for electrical and self-driving cars.
An acquisition by Excellent Wall Motor would be audacious, and one of China’s highest profile manufacturing deals to date.
Earlier on Monday, two people familiar with the matter said Superb Wall Motor had asked for a meeting with FCA, with the aim of making an suggest for all or part of the Italian-American auto group. Also on Monday, citing an email from Superb Wall Motor President Wang Fengying, Automotive News reported that Superb Wall Motor had contacted FCA to express interest specifically in the Jeep brand.
The industry publication cited a Good Wall Motor spokesman confirming interest, but telling the Chinese automaker had not made a formal suggest or met with FCA’s board.
"Our strategic objective is to become the world’s largest SUV maker," Automotive News quoted the spokesman as telling, referring to sport utility vehicles. "Acquiring Jeep, a global SUV brand, would enable us to achieve our aim sooner and better (than on our own)."
FCA shares rose Three.9 percent to 11.12 euros in early Milan trading, outperforming a plane market. Excellent Wall Motor shares were up almost three percent in Shanghai.
FCA was not instantly available to comment on interest in the group. Earlier, officials declined to comment on the earlier Automotive News report focused on Jeep.
"Jeep is the most logical choice since (Excellent Wall) wants to be the largest SUV maker in the world," said Yale Zhang, head of Shanghai-based consultancy Automotive Foresight.
Ram could be an option, but "the Jeep brand is recognized globally. I think Excellent Wall Motor is eyeing a global strategy, not just the United States," Zhang added.
