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FCA Has Chinese Suitors

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

  1. Zagnut27

    Zagnut27 Jeepaholic

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    Well, since FCA doesn't have the best track record currently for parts availability or for quality/reliability, perhaps parts from China would be an improvement. Anything is possible I suppose.
     
    Donte Lindsey and adaptabl like this.
  2. duster92

    duster92 Well-Known Member

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    I've said this before...I think the Agnelli's want to keep the luxury brands and dump the rest. Chrysler, Dodge, and Ram would be an ideal entrance point to the US market for a Chinese corporation. The sticking point is the pension liabilities and the Union plants. Jeep is the wild card. I'm sure Jeep would have many suitors from many countries.

    FCA isn't where Chrysler was in 2007-08, but Winter Is Coming for the auto market. The coming glut of used cars is going to seriously put a dent in New Car sales. I'm thinking Sergio wants out before it gets seriously worse.

    U.S. used-car glut is a dealer’s dream, automakers’ nightmare (at http://www.reuters.com/article/us-autos-used-analysis-idUSKBN1880KE )
     
    Prabhjot likes this.
  3. Alexbucks

    Alexbucks Guest

    I think we went through a million different times that a Chinese deal ain't happening.
    Gut of used simply haven't panned out, hence Ford Credit will make more money this year than last year (the only part of Ford to do so).
    As for new..... RAM and Wrangler will carry "the day" and 2018.
     
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  4. Alexbucks

    Alexbucks Guest

    FCA is not Italian......the Power base is CTC, the Revenue base is the U.S. ...with legal home Netherlands/London.
     
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  5. pabbloz

    pabbloz Active Member

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    What if that was a move to prepare to move east anyway?

    Check this out:
    Fiat Chrysler’s Marchionne eyes merger with Korea’s Hyundai (at http://www.atimes.com/fiat-chryslers-marchionne-eyes-merger-koreas-hyundai/?utm_source=The+Daily+Brief&utm_campaign=076baaaf0e-EMAIL_CAMPAIGN_2017_08_25&utm_medium=email&utm_term=0_1f8bca137f-076baaaf0e-16239655 )

    IMO a merge with HMG would make a lot of sense:
    - global sinergies between west markets and east markets (where FCA is weak)
    - FCA+HMG would become the first automaker, well beyond Toyota and VW (and this is the Marchionne's target).

    The point is how to get the brands integrated, there are many overlaps but that might be a chance to share platforms with huge savings.
     
    Prabhjot likes this.
  6. redriderbob

    redriderbob Mopar Guru!
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    Hyundai and FCA already have a good relationship. Especially the Dodge brand where in Mexico the #1 selling Dodge vehicle is the Dodge Attitude which is a rebadged Hyundai Accent.. until recently where it was replaced with a Mitsubishi Mirage.

    VA_a772d65067f24e7e943a9783f7706936.jpg

    FCA actually sells a few Dodge and Ram vehicles which are rebadged Hyundai south of our border.
     
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  7. JavelinAMX

    JavelinAMX Well-Known Member

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    .

    It seems to be the push for going down the road quite like that of commoditizing Desktop Computer components back in the early Microsoft days on IBM PC's which ultimately emerged in certain parlance as the WinTel Duopoly.

    Perhaps, then, FCA's current CEO rather fancies himself as the automobile world's Bill Gates.

    If that's true, who is the automobile world's Steve Jobs?

    .
     
  8. In that regard, I'd say Elon Musk is the automobile world's Steve Jobs.

    Telsa's valuation is hard to justify -- but their vehicles do have innovations that the Big 3 still hasn't been able to match.
    If Apple indeed enters the automobile industry (as they are rumored) -- perhaps Tim Cook would be considered the automobile world's Steve Jobs also.
     
  9. adaptabl

    adaptabl Active Member

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    No. Hyundai has had good product and good quality. Adding FCA to the mix would take the company down.
     
  10. redriderbob

    redriderbob Mopar Guru!
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    我們可以擺脫這個線程嗎?
     
  11. Nordique

    Nordique Member

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    Definitely, and just like Apple, Tesla stock is valued and traded like a tech company instead of an auto company. Not really fair (especially for the auto companies) but hey the market is the market.
     
  12. danbek

    danbek Well-Known Member

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    Seriously dude :confused:
     
  13. Hank600ES

    Hank600ES Well-Known Member

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    LOL,

    是的,请
     
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  14. Prabhjot

    Prabhjot Active Member

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  15. Prabhjot

    Prabhjot Active Member

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    Meanwhile over on 'Wall Street' : fca share prices are rocketing further up, to nearly-enough a scarcely believeable $16 (for now.)
     
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  16. MJAB

    MJAB Well-Known Member

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    As confirmed also in the article posted by Prabhjot, FCA "components" companies will be spin off.
    Magneti Marelli will be separated from FCA, and they want to do it before end of 2018.
     
  17. Prabhjot

    Prabhjot Active Member

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    How the MM+Comau+Teksid spinoffs are structured will be very interesting, including as a pointer to the post-Marchionne-retirement possible other spinoff(s), i.e., of one, two or several of the brands in some combinations.
     
  18. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    The idea of spin-offs sounds a lot more preferable to me than just outright sales.....especially if they do it the way they did with Ferrari....and control stays "in the family" (just couldn't resist the obvious pun).;)
     
    Prabhjot likes this.
  19. MJAB

    MJAB Well-Known Member

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    Magneti Marelli, COMAU and Teksid are companies themselves with their own balance, financial reports, ... and management structure.
    So technically is not difficult to split them, this structure is typical of former Fiat group since it was a conglomerate.
    Also some of the plants, where cars or powertrains are manufactured, are companies themselves.

    Magneti Marelli has about 43k employees, COMAU about 9k and Teksid about 7k, in total about 59k that is about 1/4 of total FCA employees (234k employees at end of 2016).

    Fiat group already did something similar in recent past when they split trucks, industrial machinery equipment, agriculture equipment, defense vehicles and "industrial" powertrains.
    That operation was more complex since Fiat owned something more than 87% of CNH Global and 100% of the other parts. So first was created FPT Industrial mid 2011 splitting Fiat group, than in 2012 FPT Industrial was merged with CNH Global that was controlled by FPT Industrial.
    As always for Exor, since some years, all new holding companies are based in The Netherlands.
     
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  20. GasAxe

    GasAxe Well-Known Member

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    Wouldn't it be easier and cleaner for an outside company to absorb a spun off arm rather than trying to purchase it from the parent company? Spin off Brand X, X issues new stock, hold the majority of stock, have Company Z start making overtures to buy X, watch investors jump on the stock and drive up the price before the impending sale, cash out when the acquisition is complete.
     

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