Fiat Chrysler Automobiles has reportedly rejected an acquisition bid by a Chinese automaker — but a variety of analysts and observers within the auto industry believe it could be just a matter of time before FCA is given an offer it would be willing to accept. It’s clear Detroit automakers are focused on improving their sales mix to favor retail over fleet, selling down previously higher inventories and enjoying a continued surge in larger-vehicle demand. Automaker will keep a tight focus on the fastest-growing segment of the two leading markets: small cars. Automaker Volvo will export cars from China to the United States and is going to earn the distinction as the first major global automaker to export cars directly to the U.
Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as Gulf Coast residents must replace tens of thousands of vehicles ruined by flood damage. Japanese automaker Mitsubishi ranked 29th on Consumer Reports’ report card, earning an overall score of 51. The line got a road-test score of 46, a good score on predicted reliability and a fair mark for owner satisfaction. However, automakers have been able to protect their profit margins because they have far greater market power than their suppliers.
The confirmation from Great Wall on Monday was the second time in as many weeks that a Chinese automaker has been linked to Fiat Chrysler, though previous reports suggested a Chinese company was interested in all of Fiat Chrysler, not just Jeep. Keep in mind, these are only disclosed rounds, so the actual number of investments may be quite a bit higher, as automakers are known to do stealth deals, as well. The answer — thanks in no small part to franchise laws in North America, the brand’s biggest market — is that it likely depends on who’s doing the buying. An unidentified Chinese automaker extended at least one offer this month to acquire Fiat Chrysler, industry publication Automotive News said.
Marchionne also has been signaling that he is interested in discussions with other automakers about a sale of the company, partial sale or partnership of some kind for more than two years. The Detroit automakers posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Nor has the effects of these scams been a mystery to the governmental types now claiming to be scandalized by the automakers collusions.
Besides creating, enlarging and maintaining a presence in the Indian market, the fledgling automaker will develop an export strategy to reach out to the entire range of global markets from Australia and New Zealand, to the Middle East and Africa, and finally to Mexico and South America. That improved air quality and forced U.S. automakers to be more competitive against Japanese and German firms. Word of a bid by an unspecified Chinese automaker first appeared in the trade publication Automotive News on Monday morning.