BEIJING/SHANGHAI (Reuters) – China’s Great Wall Motor Co Ltd (601633.SS) is meddlesome in behest for Fiat Chrysler Automobiles (FCA) (FCHA.MI), a association central pronounced on Monday, confirming progressing reports that it is posterior all or partial of a owners of brands including Jeep and truckmaker Ram.
There has been conjecture over Chinese seductiveness in FCA given Automotive News reported final week that an unclear “well-known Chinese automaker” done an offer progressing this month, triggering a burst in FCA’s Milan-listed shares.
“With honour to this case, we now have an idea to acquire. We are meddlesome in (FCA),” an central during Great Wall Motor’s press family department, who declined to give his name, told Reuters by telephone. He gave no serve details.
FCA Chief Executive Sergio Marchionne is seeking a partner or customer for a world’s seventh-largest automaker to assistance it conduct rising costs, approve with emissions regulations and rise record for electric and self-driving cars.
An merger by Great Wall Motor would be audacious, and one of China’s top form production deals to date.
Earlier on Monday, dual people informed with a matter pronounced Great Wall Motor had asked for a assembly with FCA, with a aim of creation an offer for all or partial of a Italian-American automobile group. Also on Monday, citing an email from Great Wall Motor President Wang Fengying, Automotive News reported that Great Wall Motor had contacted FCA to demonstrate seductiveness privately in a Jeep brand.
The attention announcement cited a Great Wall Motor orator confirming interest, though observant a Chinese automaker had not done a grave offer or met with FCA’s board.
“Our vital idea is to turn a world’s largest SUV maker,” Automotive News quoted a orator as saying, referring to competition application vehicles. “Acquiring Jeep, a tellurian SUV brand, would capacitate us to grasp a idea progressing and improved (than on a own).”
FCA shares rose 3.9 percent to 11.12 euros in early Milan trading, outperforming a prosaic market. Great Wall Motor shares were adult roughly 3 percent in Shanghai.
FCA was not immediately accessible to criticism on seductiveness in a group. Earlier, officials declined to criticism on a progressing Automotive News news focused on Jeep.
“Jeep is a many judicious choice given (Great Wall) wants to be a largest SUV builder in a world,” pronounced Yale Zhang, conduct of Shanghai-based consultancy Automotive Foresight.
Ram could be an option, though “the Jeep code is famous globally. we consider Great Wall Motor is eyeing a tellurian strategy, not only a United States,” Zhang added.
A pierce for FCA or one of a categorical brands, if successful, would concede Great Wall Motor to accelerate a designed pull into a U.S. market, a dual people informed with a matter told Reuters.
They pronounced Great Wall Motor had been creation skeleton for some time to enter a U.S. market, especially by upgrading some of a pivotal products and improving branding.
The association progressing this year strictly launched a new “Wei” code of potentially U.S.-market prepared vehicles. Wei is a final name of Great Wall Motor owner and authority Wei Jianjun.
Reporting by Norihiko Shirouzu in BEIJING, Brenda Goh in SHANGHAI, and Giulia Segreti in MILAN, with additional stating by Shanghai newsroom; Editing by Ian Geoghegan
Do you have an unusual story to tell? E-mail email@example.com