Sergio Marchionne ditch bid rumors by FCA and / or Jeep

  • The Italian government denies that Fiat Chrysler Automobiles received any offers.
  • Great Wall has shown interest in the Jeep brand.
  • It is also ruled out of FCA brands such as Alfa Romeo or Maserati, as was done with Ferrari.

Sergio Marchionne, CEO of Fiat Chrysler Automobiles has been very clear to the media on Saturday. Not only denies that there is an offer to take over FCA or any of its brands, has also denied that FCA prepares a great deal in this regard.

In recent days the price of the car manufacturer It has reached its maximum contribution (More than double the IPO price) by persistent rumors about buying a powerful Chinese business group of the FCA. After denying several manufacturers of China, Great Wall acknowledged his interest in Jeep.

The Jeep brand is the most valuable in the catalog of FCA

Chinese manufacturer has not admitted having held meetings with executives FCA, nor has made an offer nor signed anything. In that sense, the version of both manufacturers match. Great Wall Jeep allow access to the US market and have the necessary technology to create a first class SUV, hence their interest.

FCA quote on the Italian stock exchange

Jeep on track to achieve two million units annually by 2018, which it is four times the volume did when FCA began to exist as a society. Its growth potential is huge by the nature of their product-an upward course and its wide range of models. Further, Jeep has been worth as a global brand.

Great Wall not only have to agree with FCA, also need to have the approval of the competent authority for such large operations in the US, Committee on Foreign Investment, attached to the Treasury Department. Donald Trump himself until he could veto the transaction, as you count.

It certainly seems that markets look favorably FCA dispose of Jeep. It therefore seems clear that, should have done some negotiation, both FCA and Great Wall are more discreet not to increase the price of the sale. Great Wall interest need not instantly materialize.

FCA quote the New York Stock Exchange (note that the value is the same)

Under the leadership of Sergio Marchionne Ferrari it has become an independent producer and went public. Ferrari can subsist by itself, it is a manufacturer of luxury items and does not seem to have any problem in making big money with or without crisis. This condition is essential to consider another sale.

There are rumors of possible divisions of Maserati or Alfa Romeo the italoamericano group. Marchionne has said that its product portfolio is under renovation and can not now be the same entities themselves are profitable. Therefore, other business units FCA compensate for that.

If FCA deshiciese Jeep at the right price -the own brand valuation may have more entero- the group would have more resources for these brands to catch up and have a higher level of autonomy; but surely now is not the time. Marchionne settled that, while still CEO, they are not going to leave more brands for sale. The executive still has eighteen months of the mandate, which expires in April 2019.

Range Jeep 75th Anniversary

What may happen in that time is that FCA dispose of any of its business units, such as Magneti Marelli provider. That will happen before the end of 2018, we have to wait at the end of the month to release an official announcement about it. Marchionne preferred FCA free of certain loads.

In the post Marchionne was a mark of FCA can go on sale at the right time

Great Wall could use to acquire Jeep then, if I have to pay an amount higher than that if it were to do so today, because the brand of SUVs should have increased its sales and market share in different countries. And more bidders may appear by the American icon, do not discard.

FCA will face many challenges over the next decade. You have to increase the environmental friendliness of its range, enter the business or autonomous driving new trends in connectivity and mobility services. Nowadays FCA is the seventh largest automaker in the world.