First it was Geely. Then Dongfeng. Now add Guangzhou Automobile Group to the list of Chinese automakers that have denied interest in acquiring Fiat Chrysler Automobiles (FCA).
FCA has seemingly been seeking a dance partner for a merger or acquisition for a year or two now, and the company’s stock rose earlier this week when Automotive News reported that a “well-known Chinese automaker” had made an offer to acquire FCA. The company has a market value close to $20 billion. Automotive News reported that the offer was rejected for not being enough.
You may recall that the possibility of building Jeeps in China (something that actually started decades ago when the brand was owned by American Motors) became an issue in last year’s U.S. presidential election campaign. According to reports in Chinese media, the Fiat and Guangzhou Automobile groups have reached a tentative agreement to assemble Jeeps in the companies’ joint venture Changsha factory in central China.
The sprawling city Guangzhou in southern China sprung a nasty surprise on its (pop. 12.7 million citizens: it drastically slashed the number of new cars being registered. Observers predict that this move could have far-reaching consequences on the Chinese car market.
Things have been a little quiet around Better Place and their battery switching solution. Everybody is waiting for their Denmark and Israel projects to finally take off. The promised land of EVs of course is China: A huge population, a large untapped car market, and a government that gets nervous when thinking about long and perilous supply lines of foreign oil. The Chinese government demands EVs from its automakers, and just about each had a prototype or more at the Shanghai Auto Show that had a plug and a cord. Just don’t ask when you can buy one.
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- SCE to AUX Not a bad price, but it's a lot of work. At least the ad seems honest about the car.No driveshaft means that someone has to make one due to all the vehicle alterations.
- SPPPP Hmm. Reconnaisance would seem to be well covered by aerial drones. So what's the role then? Actual combat? Would the DOD / CIA deploy robotic "tacticals" to do remote killing?
- SCE to AUX The enemy can sleep soundly.
- IanGTCS Someone else's project is a default no go for me. In saying that it is a good looking car and has been mentioned it shouldn't be the most difficult project to complete. If the auction goes low enough I can see the value for someone in this one.
- ToolGuy "it’s a troubling reversal from the automaker"• Trouble for whom? Doesn't trouble me.