Chrysler Getting Closer To A Sale?

Hey, remember reading this? Yup, back in April, we examined how FCA could actually gain by subtraction, that is: subtraction of some of their brands. Now, people are asking the question, “Is Chrysler getting closer to a sale?”.

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The big difference now is that a couple of companies might want all of Chrysler in its entirety, and, Fiat and it’s sister companies with it. That means the potential buyer would purchase FCA, the parent company of Dodge, Jeep, Ram, Chrysler, Fiat, Lancia Maserati, and Alfa Romeo. Ferrari was already spun off into it’s own stand-alone company a couple of years ago.

And who are these companies, you might ask? Well, the contenders are Chinese. Dongfeng Motor Corp., Great Wall, Zhejiang Geely Holding Group, and most importantly, FCA’s current joint venture partner in China, Guangzhou Automobile Group.

All of these companies have the money to buy FCA, and all have strategic goals that would be accomplished by an acquisition of FCA.

To those of you that are feeling a bit faint over the prospect of buying a Jeep or an Alfa Romeo or your next Dodge Challenger from the Chinese, well, we’re sorry. These are the companies with the desire and the cash to buy FCA.

There is, however, the current political climate in the U.S. to consider. There may be some snags to any acquisition by a Chinese company waiting for FCA and any potential buyer.

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It should be noted, however, that when Geely bought Volvo, the ominous forecasts never materialized, and in fact, the company has been reinvigorated.

The same thing happened with the Indian acquisition of Jaguar-Land Rover.

On the other side of the coin, Sergio Marchionne, the CEO of FCA, has publicly stated his desire to retire in 2019, and first offered FCA (or parts of it) to potential buyers over two years ago. Including GM, which immediately rebuffed him.

Volkswagen was a contender until the diesel emissions scandal rocked the company, and PSA (Peugeot-Citroen) was also a player until they bought Opel from GM instead. That leaves the Chinese companies.

Is Chrysler getting closer to a sale?

Stay tuned…

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