"ranwhenparked" (ranwhenparked)
08/18/2017 at 23:52 • Filed to: None
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"ranwhenparked" (ranwhenparked)
08/18/2017 at 23:52 • Filed to: None | 2
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This seemed to get lost in the shuffle amid the news that Guangzhou Automobile (Group) Corporation was out of the running to buy Fiat Chrysler, but Dongfeng Motor Corporation has also disavowed any interest. With Geely already out of the picture, this just leaves Great Wall out of the four that were originally said to be interested. They are also the only one rumored to have submitted an actual bid so far, which was deemed insufficient by Marchionne.
!!! UNKNOWN CONTENT TYPE !!!
If Great Wall doesn’t want to up their bid, or gets frustrated with the process and quits, that would represent yet another in an increasingly lengthy list of failures on Marchionne’s part to off load the company. After basically every automaker in Europe, the United States, and now China rejects you, there doesn’t seem to be much left. The Japanese, as a rule, don’t really do foreign acquisitions.
Steve in Manhattan
> ranwhenparked
08/19/2017 at 00:22 |
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Why do the owners want to get rid of it? They should be able to make some money with those badges.
gmporschenut also a fan of hondas
> Steve in Manhattan
08/19/2017 at 03:06 |
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People the industry think there is too many brands (macro view), and Marchionne thinks that there needs to be more consolodation in the industry.
They are screwed as they have little in the development pipeline.
Dodge, Chrysle, Lancia and Fiat don’t have much, Alfa + Maserati (similar to Cadillac) requires huge cash flows to make it competitive to the Germans,
Which leaves Ram, Jeep, and Ferrari holding up the company. if/when there is another finacial/oil mess they’re screwed.
the prolblem is the Japanese as mentioned are huge into foreign takeovers and have a bit of a problem themselves. (its felt among many that Suzuki, isuzu and maybe even subaru need to merge with the big three (honda, toyota, and nissan) so they don’t want FCA. The major issue is that leaves GM Ford, VW. (ford, gm have little to gain from the costs) and vw probably doesn’t have any cash.
Only major manufacturer left is Kia. Maybe Marchionne will try and peddle his wares in Seoul
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ranwhenparked
> Steve in Manhattan
08/19/2017 at 07:33 |
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FCA is profitable, but they have significant debts and need to spend considerable amounts to update and expand their product line over the next several years. They need capital, badly, and Marchionne has determined that a takeover by/merger with a wealthier and stronger company is the way to get it. Plus, the Elkann/Agnelli family wants out of the auto business.
He hired consultants and did a huge and well researched report that he claimed showed GM was the best possible partner, with significant cost savings and improved efficiencies for both companies, but basically got laughed out of the room by Mary Barra. After that, he seemed to suggest that he would start trying to rile up GM shareholders to get them to revolt and force a merger, but never followed through. Then, he went on to VW, with a similar reaction, and now the Chinese.
pip bip - choose Corrour
> ranwhenparked
08/19/2017 at 07:44 |
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FCA is screwed