Yesterday, we reported that Great Wall Motors had shared intent to purchase the Jeep Brand from FCA. Today, the story has changed.
Published on AutomotiveNews.com August 22, 2017:
BEIJING — Great Wall Motor Co. cooled prospects for a deal with Fiat Chrysler Automobiles, saying there are no talks and it may not pursue a takeover the Italian-American car manufacturer’s Jeep division.
Commenting just a day after expressing interest, Great Wall said there are “big uncertainties” whether it will continue to study Fiat Chrysler, the Baoding-based automaker said in a filing to the Shanghai stock exchange. The Chinese company’s efforts have “not generated concrete progress as of now,” and it has not established contacts with Fiat’s board.
FCA CEO Sergio Marchionne stoked deal speculation last month when he said the automaker will evaluate whether to spin off some businesses. The Jeep marque anchors the company’s mass-market car operations and has been a key focus of expansion. Reflecting the brand’s importance, Morgan Stanley estimates Jeep is worth about $24.2 billion, about $4.7 billion more than the entire group’s market value.
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