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FCA Has Chinese Suitors

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

  1. Erik Latranyi

    Erik Latranyi Allpar Legacy

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    How do you say that with a straight face?

    Marchionne has been trying to find a partner for years in order to make a deal. Do you think he has gone rogue or do you think he is doing what Exor wants?

    The only thing we do not know is what would such a deal look like. Total sale? Partial sale? Acquisition? Merger? Combination of these?

    But it is more than abundantly clear that Exor wants a deal.
     
  2. Mike V.

    Mike V. Mopar-nac The Moderator

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    FCA and Great Wall have been very clear in public statements.

    Anything beyond that is assumption. If you have a link to a public statement by Exor in regards to selling their automobile business (FCA) outright or the Jeep brand, as you have stated they are interested in doing multiple times, would you please provide the link?

    Mike
     
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  3. Erik Latranyi

    Erik Latranyi Allpar Legacy

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    So, you believe that Marchionne's public statements about GM were done without permission from Exor?

    Do you really want us to believe that he did not discuss such an idea first and had permission to send his email to them?
     
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  4. Mike V.

    Mike V. Mopar-nac The Moderator

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    I never stated that.

    I never stated anything about that either.

    Do you have a link to a public statement where Exor announced that they were interested in the outright sell FCA or the Jeep brand as you have stated in this thread?

    I have never seen the statement you seem to be referring too multiple times in this thread, especially to a Chinese company.

    Mike
     
  5. Erik Latranyi

    Erik Latranyi Allpar Legacy

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    Now you are trying to put words in my mouth.

    I NEVER said for certain what any "deal" would look like. I have been the one saying that it could take many, many forms.

    YOU posted: "To be clear, this is assuming that Exor is interested in making a deal."

    My point is that statement flies in the face of FACTS. The CEO does not go out and make offers to GM and/or talk about a deal with VAG, etc unless he has the permission from above. We do not need a public statement to know that a deal is desired.
     
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  6. aldo90731

    Staff Member Level III Supporter

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    Yep. In fact, according to my calculations, Toyota has been doing it with Prius for a decade.
     
  7. Citation84

    Citation84 Well-Known Member

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    After reading all these pages I am surprised to have seen no one make mention of a similar transaction in the UK: SAIC and MG. While different in a lot of ways, SAIC has not exactly leveraged their buy into cash and prizes.

    The monthly sales #s are growing and they'd be great..... for a boutique manufacturer. But beyond the design center, there is no longer any sort of production in the UK.

    Having a known brand name with a legacy as a beachhead for Chinese built cars hasn't exactly worked out for them, unless they are playing a long, long, lonnnnnggggg game.

    Quoros came and went with barely a ripple. Lots of interest at first and then, nothing. Years of rumors about the Chinese breaking into the US market [thanks Malcolm Bricklin] and... nothing.

    Really the first to do it are Volvo and GM.

    I think it would be telling to remember how BMW [Rover/MG] Daimler [Chrysler] and now SAIC [MG] {or any: Nash/Hudson, Kaiser/Willys, Studebaker/Packard, GM at the turn of the 20th Century } have handled their buyouts/mergers/acquisitions could give some insight into what is potentially going on with Great Wall and FCA.

    I boil it down to: follow the money. And brands will die. I don't want that, but even Iacocca was talking about the consolidation of the industry 30 years ago.
     
  8. Mike V.

    Mike V. Mopar-nac The Moderator

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    Erik, I’m not trying to argue with you or put words in your mouth.

    You stated in post #484 that “all assets were on the table” and the thread(s) you posted that in are in regards to a Chinese firm purchasing Jeep or FCA in whole. Can you provide a link to your source?

    I am not trying to patronize you. I am really interested to read it because I have not seen what you are noting because FCA’s public statements have been the opposite.

    Thanks,

    Mike
     
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  9. Erik Latranyi

    Erik Latranyi Allpar Legacy

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    That was in response to those saying that Jeep would be off the table because it is currently successful.

    Nobody seemed to respond and tell these people that everything may be on the table, depending on what Exor wants to get out of any "deal."

    This has nothing to do with the Chinese or anyone. We know that Exor wants a "deal". To get there, everything is on the table. They may "desire" to keep certain assets, but that is not how business works. If the right "deal" requires the sale of a particular asset that they really, really like, then that asset will be sold.

    It is all about getting the "deal" that they want and nothing else matters.
     
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  10. jerseyjoe

    jerseyjoe Plymouth Makes It

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    Isn't consolidation like synergies where you get ride of 65% of the combined force and overwork the remainder tll they drop and have to rehire 3 times as meny?
     
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  11. GasAxe

    GasAxe Well-Known Member

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    As far as I can tell, here are the "facts":
    FCA may or may not be for sale or looking merge.
    Brands within FCA may or may not be for sale individually.
    Sergio may or may not have previously been told by Exor to sell or merge FCA.
    Today, Sergio/Exor may or may not be interested in a sale or merger.
    There may or may not be interested parties interested to purchase FCA or individual brands.
    There may or may not be interested parties willing to purchase FCA or individual brands.
    There may or may not be interested parties able to purchase FCA or individual brands.
    Speculation of FCA selling or merging will continue until there is something better to talk about.:cool:
     
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  12. Mike V.

    Mike V. Mopar-nac The Moderator

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    What is the deal that Exor wants?

    Based on our discussion, my original comment that you questioned is still valid... There has been no confirmation that Exor is interested in deal that involves selling its one or any of it’s auto brands to a Chinese company.

    Mike
     
    #492 Mike V., Aug 22, 2017
    Last edited: Aug 22, 2017
  13. MJAB

    MJAB Well-Known Member

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    What Exor, better to say John Philip Jacob Elkann, thinks about what should be future of FCA, and in general automotive industry, can be found in Exor's "letter to shareholders" of 2016 (for annual report 2015).

    EXOR - Letter to shareholders (at http://www.exor.com/home/EXOR/Lettera-agli-azionisti/Archivio/Lettera-agli-azionsiti-2015.html )

    There is a PDF to download, the interesting part starts at page 10.

    In the document there is a link to
    "Confessions of a Capital Junkie April 29, 2015
    An insider perspective on the cure for the industry's value - destroying addiction to capital"
    which link is hereafter.
    https://www.fcagroup.com/it-IT/inve...esentations/SM_Fire_investor_presentation.pdf
     
  14. Ian

    Ian Car Freak

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    Why can't FCA just produce vehicles, fix customer relations, dealers and put all sales and merger talks aside. We care about Mopar and everytime something like a sales talk or merger or something comes up, we just don't know where it's all going to end up.
     
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  15. Mike V.

    Mike V. Mopar-nac The Moderator

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    Maybe they are working on that, but lots of distractions are taking place.

    Mike
     
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  16. Mike V.

    Mike V. Mopar-nac The Moderator

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    Are you sure you wanted to post this here? This thread is about a possible Chinese acquisition of FCA or one of the FCA brands.

    Thanks,

    Mike

    Moderator Note: all off topic posts on this subject were moderated.
     
    #496 Mike V., Aug 22, 2017
    Last edited: Aug 22, 2017
  17. TripleT

    TripleT Allpar Legacy

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    People under him are doing that, his position is to examine and review such things.
     
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  18. BASONE88

    Supporter

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    :D:pThanks for the giggle!:)
     
  19. GasAxe

    GasAxe Well-Known Member

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    I'm sorry but reading that description makes me think Sergio is another Baghdad Bob. "FCA denies any presence of the Chinese here!"
     
  20. TripleT

    TripleT Allpar Legacy

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    It a public traded company.... there is nothing to stop anyone with enough cash to hire a firm and propose a purchase. Happen all the time all over the world, to all sorts of businesses. Often completely unsolicited. CEO looks at it, discusses it, and denies or take one of 100 steps in the process. Of which such thing die quickly or carry on of years. Getting exercised by a another companies interest at this point is almost comical.
     
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