It seems like one of China’s largest companies, Great Wall Motor Co. is very interested in buying Fiat Chrysler Automobiles’ most important asset, Jeep. It seems like the Chinese buyer wants to make a bid for the American military symbol as soon as possible. The Jeep vehicles became iconic especially during World War II when the United States forces were using them for almost everything. It’s interesting that just last year, Ferrari, the Italian sports car manufacturer became its own thing. Since then, experts are claiming that the Ram trucks and Jeep are responsible for almost the entire profit of Fiat Chrysler. This is supposedly about $7.1 billion.
Some very ambitious plans
According to reports, those recent years saw an increased growth in Jeep demand, especially thanks to the lower prices for gasoline. Now, people buy over 1.4 million Jeeps each year, which is more than what any other American brand sells annually. It’s worth noting that this sudden interest from Great Wall’s part comes after entire years of speculation. Many have wondered who will finally come out and buy some of Fiat’s brands, or even all of them. Sergio Marchionne, the Chief Executive of the company has tried to get GM as a partner. Unfortunately, his attempts were unsuccessful.
Many industry experts have said that companies like Volkswagen or Peugeot, from France, could have been powerful competitors when it comes to buying the company. However, it’s interesting that by Monday, Great Wall hadn’t made any offer. Also, rumor has it that Fiat is still not convinced to sell maybe it’s most profitable division. According to a spokesperson from Great Wall, the company has not yet made any clear offer. However, the person did confirm that they will make efforts to pursue a deal with Fiat.
Great Wall buying Jeep?
According to a recent analysis, Jeep is worth over $20.7 billion. So, keeping in mind that Great Wall’s market value is of only $16 billion, it could be a real struggle for them to provide the financial means to extract Jeep from Fiat Chrysler. It’s also worth mentioning that, in the past, Chinese buyers were successful when they made various deals. Maybe the most important such move was the acquiring of Volvo Car by the Zhejiang Geely Holding Group.
Image source: pxhere