April 28, 2024

Deep Throat broke the news, Chinese buyers must be careful, FCA is a "big pit"


In recent days, a foreign media rumors detonated the Chinese automobile circle. According to a US media report, "A representative of a well-known Chinese automaker made a bid for the Fiat Chrysler Motors (FCA) this month at a higher than market value, but this proposal was rejected."

It is worth noting that in this report, very detailed details were revealed. First, "a source said that the FCA executives have traveled to China to meet with the senior executives of the Great Wall Motor Company. Last week, the Chinese delegation also appeared in the FCA. "Headquarters in Auburn Hills, Michigan"; Second, "different sources pointed out that Dongfeng, Great Wall, Geely, or FCA's current joint venture partner in China, Guangzhou Automobile are actively fighting for it."

For this case, the century-long merger and acquisition case, which is still in the stage of "catching shadows," has naturally triggered a great deal of attention from the outside world. Is this merger and acquisition rumor in the Sino-U.S. auto industry true? Why do Chinese buyers flock to compete for FCA?

The insiders of the relevant companies stated that this was a "cold rice stir-fried" by foreign media only because there were rumors of private contacts several years ago, and it has continued in recent years.

However, the headline app for mobile phones was exclusively informed of an industry “deep-throat” news. The source said that the foreign media’s report may be a deliberate FCA deliberately hyped by the plight of the self-inflicted, but contact with Chinese buyers. "Perhaps not groundless."

中国车企收购FCA

First of all, Malcolnet and the FCA are in urgent need of getting rid of the plight. On the one hand, the Group’s accumulated losses have reached about US$7 billion, making it a top loss for major auto groups.

According to the Fick Group’s previous strategic plan, it will complete sales of 7 million vehicles in the world in 2018. The source revealed that although Fick Group has performed well in the Chinese market, global sales will not be able to meet its target.

According to the latest data, Fick Group performed well in the Chinese market in July, and GAC Fick sales exceeded 15,000 units, achieving a year-on-year growth for 20 consecutive months since December 2015. From January to July of this year, the cumulative sales volume of GAC FIC exceeded 120,000 units, a year-on-year increase of 63%. However, such excellent performance is only "hard to support" for the global target of 7 million vehicles.

At the same time, he also showed that although Fick Group has shown a recovery trend in the first two quarters of this year, financial status and profitability have continued to rise, but in the medium and long term, Fick Group not only bears huge debts, but R & D has also been weak, including The lack of new energy and forward-looking technology, Chinese buyers fetch the Fick Group, in addition to the JEEP this SUV gold label, or will face the "Tai Hang."

中国车企收购FCA

The Automotive Headline App notes that Malcolnet has very experienced experience in mergers and acquisitions and spin-offs, and is also a veteran who is good at maximizing benefits from them. For potential Chinese buyers, it is also a tough opponent.

In 2009, Fiat and Chrysler launched a five-year merger and acquisition in Malchone. In 2014, the auto companies eventually merged into one, which is today's FCA.

In 2011, Malchone split Fiat Industrial and Fiat Industrial into two separate companies. Among them, Fiat company is mainly responsible for the production of passenger cars, business including Lancia, Alfa Romeo and Chrysler; Fiat Industries mainly produces agricultural vehicles and agricultural machinery and equipment.

In 2016, Malchonet dominated Ferrari’s spin-off business from the FCA, making it an independent company. At present, Ferrari is listed on the New York Stock Exchange. According to the headline APP query, the price per transaction is US$110 and the total market value reaches US$27 billion.

In fact, since 2012, Malchone has already started looking for potential buyers. A number of automotive groups such as GM, Volkswagen, PSA, Ford and even small-scale automobile companies like Suzuki and Mazda have reported cooperation with Fick Group, but they have not yet become reality.

Therefore, at present, the Fick Group has been exposed to intensive exposure to Chinese companies, which is an inevitable choice for itself to break through the development bottleneck. However, Chinese buyers are faced with relatively high risks and challenges, and the “hot potato” that Volkswagen and GM are reluctant to accept. , Chinese car companies need to carefully weigh and measure.



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