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FCA Has Chinese Suitors

Discussion in 'Mopar / FCA News' started by 1969 300, Aug 14, 2017.

  1. 1969 300

    1969 300 Well-Known Member

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  2. freshforged

    freshforged Well-Known Member

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    Here's hoping not.
     
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  3. redriderbob

    redriderbob Mopar Guru!
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  4. suzq044

    suzq044 Resident Photoshop Nerd

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    What they (like everyone else) want, is Jeep.
     
  5. Max Wedge

    Max Wedge Well-Known Member

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    I remember being a TPT back when Cerberus bought Chrysler and the other possibility was Magna. I think they would have been a great choice. Flush with cash can make many parts in house.
     
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  6. TripleT

    TripleT Allpar Legacy

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    remember when Cerberus had multiple buyers lined up to sell the company and pieces and strap heap Dodge and Chrysler......... glad it worked out for Fiat to come in.
     
  7. Erik Latranyi

    Erik Latranyi Allpar Legacy

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    The Chinese have been talking with FCA for the last 5 years. The fact that delegations of Chinese businessmen have been sighted at Auburn Hills multiple times over those years indicates both sides are interested and talking.

    It doesn't mean a deal is a sure bet, but Mergionne does not seem to resist a visit, tour and discussion.

    But a merger/sale/acquisition has been on the table since Day 1. This also explains why Fiat Studios are separate and continued to be funded despite the dismal sales in the US.

    Besides, Net Debt Zero is very important for multiple reasons.
     
    #7 Erik Latranyi, Aug 14, 2017
    Last edited: Aug 14, 2017
  8. DBY2014

    DBY2014 Active Member

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    Want to see the company succeed but.....................not sure what to think. All I know is if this happens down the road it's going to be politicized for sure by both sides....this could get ugly. The again, I am surprised GM importing cars from China here has not generated that much media attention.
     
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  9. MJAB

    MJAB Well-Known Member

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    When in 2015 You are 3rd U.S.A. top spender in advertising than is less probable someone in the media would be interested in making too much noise.
    Ford was 6th and FCA 8th.
     
  10. Ernesto

    Ernesto Active Member

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    The Berlin Wall fell.

    Before 2002, I wouldn't use Pennzoil to lubricate a door hinge, then Shell bought Pennz and changed the world.

    Twenty years ago, I walked out of Pep Boys because they beat me out of a mail in rebate for a Purolator oil filter. I just had Pep Boys install my Wagner front brake pads on my like new 2007 PT Cruiser and I received my $50 Visa gift card and I'm pleased as punch.

    How things change. I'm a mid size car guy. With my 200 Limited out of production, the Chinese on the horizon and after about 30 new Chrysler purchases, is GM or Ford in my future?
     
  11. Erik Latranyi

    Erik Latranyi Allpar Legacy

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    Here is the Allpar article: How do you say “Fiat Chrysler” in China? (at https://www.allpar.com/news/2017/08/how-do-you-say-fiat-chrysler-in-chinese-38301 )

    A spin-off of Ferrari, Maserati and Alfa would be well-timed since they share the least with the other FCA brands.

    Once Dodge and Jeep start using Giorgio, the groups will be much more intertwined with each other and any separation would be more difficult than it would be today (or for the next year).

    A spin-off of Ferrari, Maserati and Alfa could be done leaving Exor with a niche, high-margin auto group with very little debt and good cash generation.
     
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  12. Dave Z

    Dave Z It's me, Dave
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    Volvo’s seen a massive investment. China is very, very wealthy right now — not Chinese people, but Chinese government and companies. The government essentially wants them to buy as much of the US as they can, while they have surplus cash. It’s one way to end the cold war, I guess. In any case, Volvo doesn’t seem to have suffered.

    Remember Japan’s spending spree? I wonder if this will be similar.

    Be fun if some American billionaires made a counter-offer to restore Chrysler to US hands, but we know that ain’t gonna happen. You don’t get to be that rich by being patriotic. (Though Jeff Bezos did save the Washington Post.)
     
  13. Erik Latranyi

    Erik Latranyi Allpar Legacy

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    The Chinese are buying of companies all over the world, not just in the US.
     
  14. Prabhjot

    Prabhjot Active Member

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    Ferrari has already been spunoff: with glorious results for all parties, not least being fca itself. Magneti marelli and COMAU will likely be sold outright, in 2018, at least by fca if not exor: a 100% sale? The question then that remains it whether, as imo Marchionne should, FCA itself should be dis-integrated, dispersed via further spinoffs. i.e., Jeep+Ram on the one hand, and Chrysler+Dodge+FIAT europe-and-latam on the other (these last being low to negative margin structurally and necessarily: "in and through business cycles.") With Alfa, maserati and/or Dodge being spunoff as well, together. FCA manufacturing, engineering, design etc could become like a Magna (supplier-oem-contractor) with little or no brand valence of its own. All else being equal: HUGE financial returns, especially from say 'the Chinese' who crave american, european and/or global brands-with-no-chinese-taint above all, and financial strengthening and future-proofing of the brands themselves, with IP, r&d and/or brand-management retained by the new avatars of extant managers, engineers et al?
     
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  15. Mike V.

    Mike V. Mopar-nac The Moderator

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    Or it has nothing to do with mergers and it is because the Chinese are either:
    1. Interested in expanding manufacturing in China
    2. Interested in purchasing one of the smaller FCA groups like Comau
    3. Interested in being a tier 1 supplier.
    4. Interested in expanding tier 1 supply via China.
    5. Interested in purchasing similar equipment that is used by FCA and/or produced by an FCA affiliate business.

    Mike
     
    #15 Mike V., Aug 14, 2017
    Last edited: Aug 15, 2017
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  16. Erik Latranyi

    Erik Latranyi Allpar Legacy

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    1. FCA has a partner in China
    2. Does not require a plant tour/executive delegation
    3. Does not require a plant tour/executive delegation
     
  17. BASONE88

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    I believe Sergio is not the guy to sell off to China.

    Perhaps the next guy will. By then, maybe China won't be standing with cash in hand..time shall tell. Sergio has his own plans - it's not a sell-off or even create a Daimler/Chrysler-merger scenario.
     
    #17 BASONE88, Aug 14, 2017
    Last edited: Aug 14, 2017
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  18. Mike V.

    Mike V. Mopar-nac The Moderator

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    We give plant tours to many people, including executives for no apparent reason at my company.

    Seems there is no confirmation on who exactly the Chinese reps are representing.

    Mike
     
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  19. Erik Latranyi

    Erik Latranyi Allpar Legacy

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    Is your executive leadership conducting the tours?
     
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  20. JavelinAMX

    JavelinAMX Well-Known Member

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    .

    Sergio/Exor would likely have already set a plan in place for someone else to follow. The detail could easily be lost in the shuffle. Let's not forget the famous 5-year plans. Sergio/FCA did not share the Exor 5-year, or 10-year plan. Doubtful they shoot from the hip as a practice.

    .
     
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