Tag: mergers

By on July 2, 2018

2019 Ram 1500

Last week’s report in the Asia Times, citing unnamed sources, laid the foundation of a rumor that Hyundai has its eyes on Fiat Chrysler as a potential takeover target. FCA CEO Sergio Marchionne’s history of attempting courtships with other major automakers only served to bolster the idea. If General Motors and Volkswagen seemed so attractive, why not Hyundai?

Forget about it, claims a Hyundai spokesman. (Read More…)

By on January 16, 2018

jeep renegade grille

Last year, following several fruitless attempts to find a merger partner, Fiat Chrysler Automobiles found itself on the business end of a pretty shocking rumor. Apparently, several Chinese automakers were lining up for a chance to buy FCA. Not so, said those automakers, though Great Wall Motors mentioned it totally wouldn’t miss a chance to steal the Jeep brand away from its parent.

While the thought of such an acquisition no doubt inspired nightmares among Jeep fans (and FCA accountants), it was not to be. Not only is the automaker determined to keep a firm hold on its most valuable brand, it’s not planning on offloading any division, CEO Sergio Marchionne now claims. (Read More…)

By on October 11, 2017

chinese-bmw-i3

German luxury automaker BMW is seeking to establish a joint venture with China’s Great Wall Motor. The prospective deal focuses specifically on electric vehicles, according to sources familiar with the matter. A cooperative relationship with Great Wall would be BMW’s second in the world’s largest auto market – and a necessary one, as China forces all foreign automakers to team up with local partners in order to do business within the country.

Great Wall Motor Co. is China’s largest SUV maker by volume, and witnessed a nearly 20-percent rise in its share price on Wednesday after Asian media outlets reported it was in talks to partner with BMW. (Read More…)

By on October 2, 2017

magneti-marelli

Fiat Chrysler is trying to work some financial magic to make itself look more appetizing to prospective investors. However, few buyers are likely to be interested in the whole of FCA. Its North American half has proven adept at assembling sport utility vehicles and Jeep would be a tasty morsel for any company hoping to expand its portfolio. But the Italian arm’s focus on smaller automobiles could get in the way of a potential deal — especially if the buyer already has their own.

CEO Sergio Marchionne wants the company to be purchased by an established automaker, but there are precious few that would want everything it has to offer. One possible solution is to separate subsidiaries from the core group. Marchionne says that might be the best solution for dealing with component supplier Magneti Marelli.

FCA has been of the mind that streamlining the business is the best way to attract investors without harming subsidiaries. After all, it worked well enough for Ferrari. The brand was spun off from FCA in late 2015, and its stock valuation embarked upon a rocket ride to the moon the following month.  (Read More…)

By on September 21, 2017

hyundai-sonata-eco-grille logo

Snubbed by both the Germans and the Chinese, Fiat Chrysler Automobiles is continuing its journey to find the automaker that will sweep it off its feet and say, “Let’s build a factory together.” However, if CEO Sergio Marchionne maintains that FCA will be bought by an established automaker, he’s running out of options. The automotive dating pool isn’t particularly deep.

While there was some stirrings of vague Korean interest when news broke of talks between FCA and Chinese automakers, those rumors dissipated quickly. But reports of a possible business deal between Hyundai and the Italian-American company surfaced recently after Great Wall Motors shrugged off its proposed bid for Jeep. FCA later said it had not received any offer from the Chinese manufacturer.

Presumably, Great Wall would have used FCA to supplement its sport utility sales and begin making moves on North America. Another brand that might be interested in bolstering its supply of SUVs is Hyundai — something the South Korean press has been buzzing about all week.  (Read More…)

By on August 22, 2017

All-new 2017 Jeep® Compass Trailhawk - Image: FCAIn what is almost certainly going to be little more than a faint memory in the minds of devoted readers at AmericasJeepLovers.org, the potential relationship between Wang Fengying’s Great Wall Motors Co. and Sergio Marchionne’s Fiat Chrysler Automobiles has taken a turn for the less likely already.

It seems like years ago — no, wait, it seems like yesterday — that Great Wall Motors Co. publicly declared its viability as a suitor for FCA Jeep, the most important, highest-value, primary source of desirability within the FCA family. Jeep, you’ll recall, is likely worth substantially more on its own than the whole of FCA, Jeep included. This explains why it came as no surprise that Great Wall Motors or any other automaker would express an interest in purchasing Jeep from FCA. With huge global potential for a hugely popular brand that hasn’t yet tapped many open markets, Jeep has reach.

But does Great Wall even have the money? Would FCA even entertain the idea of selling off its most valuable component? And is there even any hope of negotiation? (Read More…)

By on August 21, 2017

2017 Jeep® Grand Cherokee Trailhawk Great Wall logo - Image: FCA/Great WallIn the week that’s elapsed since initial reports surfaced of a Chinese automaker planning a takeover of Fiat Chrysler Automobiles, Geely, Dongfeng, and Guangzhou Automobile Group have all taken themselves out of the running.

Automotive News now reports, however, that the seventh-largest automaker in China, Great Wall Motors Company, has a keen interest in FCA, which has long courted unwilling suitors.

There’s one outstanding issue. Great Wall Motors Co. is open about its desire to acquire Jeep as part of a mission “to become the world’s largest SUV maker,” but Great Wall doesn’t want FCA’s other, far less valuable entities.  (Read More…)

By on May 24, 2017

Lotus

China’s Zhejiang Geely Holding Group Company has decided to purchase a 49.9 percent stake in Proton from Malaysian conglomerate DRB-Hicom and a majority share of the United Kingdom’s Lotus Cars.

Geely seems to have an affinity for other manufacturers and eclectic tastes — not just because it has received criticism for modeling its own cars after everything from Roll-Royce to Toyota, but because it also purchased Volvo Cars and the London Taxi Company. This could be extremely good news for Lotus, which always seems to be in a bit of a bind. Whether or not you like the idea of a Chinese company owning distinctively European brands, Geely helped Volvo come back from the brink and has committed to doing the same for Lotus.

“Reflecting our experience accumulated through Volvo Car’s revitalization, we also aim to unleash the full potential of Lotus Cars and bring it into a new phase of development by expanding and accelerating the rolling out of new products and technologies,” stated the company in its official announcement.  (Read More…)

By on March 16, 2017

marchionne looking pleased

Fiat Chrysler Automobiles CEO Sergio Marchionne changed his stance on the appeal of a potential merger with Volkswagen AG, saying he now has “zero interest” after being publicly spurned by company CEO Matthias Müller.

Marchionne had previously expressed a repeated interest in sharing business with the German automaker, especially with regard to green technologies.

However, after an initial remark where he said he was “not ruling out a conversation,” Müller explained that he had no direct contact with the FCA CEO. “It would be very helpful if Mr. Marchionne were to communicate his considerations to me too and not just to you,” Müller told German reporters on Tuesday. “I am pretty confident about the future of Volkswagen, with or without Marchionne,” he concluded.  (Read More…)

By on March 8, 2017

marchionne

It’s often sad to witness the moment when an individual’s high hopes collide with a cold, antiseptic wall of reality. Though we should all aspire for more, the inescapable truth is that most of our dreams will end up dashed on the rocks.

This week it was Fiat Chrysler Automobiles CEO Sergio Marchionne’s turn — once again — to face rejection. Buoyed by PSA Group’s acquisition of General Motors’ European car divisions, Marchionne must have assumed that love was in the air and it would perhaps soon be FCA’s turn to go home with another automaker.

Unfortunately for Marchionne, one potential mate quickly burst that balloon in a fairly heartbreaking fashion. (Read More…)

By on March 3, 2017

Opel Headquarters

As expected, a transfer of General Motors’ subsidiary Adam Opel AG to European automaker PSA looks to be a done deal.

PSA’s board approved the deal on Friday, with an official announcement planned for early next week. Considering the European peripheral has cost GM $15 billion in losses since 2000, GM probably isn’t terribly sad to see Opel go.

With talks progressing all week, the two automakers focused on differences on about $10 billion worth of Opel outstanding pension deficiencies and a GM request that a PSA-owned Opel would not compete with its own Chevrolet-based lineup in China or in other overseas markets.  (Read More…)

By on October 17, 2016

Buffalo (David Hamill/Flickr)

Sparks flew when Tesla teamed up with Panasonic to produce battery packs at the automaker’s Nevada Gigafactory. Of course, it helped that the Japanese battery maker brought $1.6 billion of its own money to the table.

After it tested the waters and liked what it saw, Tesla has now inked an agreement with Panasonic to bring jobs — hopefully long-lasting ones — to Buffalo, New York. (Read More…)

By on April 14, 2016

Tango dancing

Fiat Chrysler Automobiles chairman John Elkann, like the company’s sweatered CEO, is making come-hither eyes in the hopes of luring a suitor.

FCA needs a partner to turn its lofty debt pile into capital, so Elkann wants other automakers to know just how thrilled he’d be if they helped FCA save $10 billion a year, he told shareholders of the investment company controlling FCA (via Bloomberg).

The problem, he lamented, is that other automakers are all wrapped up in trying to develop autonomous technology, often with outsider help. Like a wallflower with a heart of gold, FCA feels ignored despite having a lot to offer.

(Read More…)

By on December 28, 2015

PepBoysLogo_PressRelease

Bridgestone will buy Pep Boys for $947 million, shunning a competing bid from investor Carl Icahn, to complete its purchase of the auto parts chain, Bloomberg reported (via Automotive News).

The bidding between Icahn and Bridgestone began in October when the auto parts chain shunned a $800 million price from Icahn to agree to an $835 million bid from the Japanese tire giant. Icahn raised his bid first to $863 million, then up to up to $1 billion for the chain, but Pep Boys ultimately decided the $947 million offer from Bridgestone was a better deal.

The last-minute bid for the chain would create the world’s largest chain of 3,000 stores, including Bridgestone’s Tires Plus, Firestone Complete Auto Care, Hibdon Tires Plus and Wheel Works stores.   (Read More…)

By on October 26, 2015

PepBoysLogo_PressRelease

Japanese tire giant Bridgestone agreed Monday to buy Pep Boys for $835 million and potentially create the largest chain of U.S. automotive service centers, the companies announced.

The deal would create a chain of more than 3,000 auto care stores — 2,200 Bridgestone-owned centers including Tires Plus, Firestone Complete Auto Care, Hibdon Tires Plus and Wheel Works, and more than 800 company-owned Pep Boys stores.

According to the companies the deal will finalize in early 2016.  (Read More…)

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