Is A Chinese Automaker Buying Detroit’s Fiat Chrysler?
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Tesla briefly held the title of the most valuable car manufacturer in the U.S. earlier this year That valuation had nothing to do with the number of cars Elon Musk’s company was selling, which was (and still is ) a fraction of the output of established automakers like GM or Ford. That said, it’s no secret that automakers have shown more interest in startups lately.
German automaker BMW placed 3rd on Consumer Reports’ report card, with an overall score of 77. The brand got a road-test score of 86, and a very good owner satisfaction rating, along with a good predicted reliability mark. Toyota remains heavily invested in hydrogen fuel-cell research while hedging that bet by partnering with Mazda on a U.S.-based EV plant that will output 150,000 EVs per automaker per year starting in 2021.
Instead, Tesla’s value was driven by the perception that it’s better positioned to produce all-electric cars than OG automakers going forward. In its annual auto issue, Consumer Reports ranked 31 automakers in their report card, taking the average test score from all the new models purchased and tested by the magazine, which takes road tests, predicted reliability, owner satisfaction, and safety into consideration for each vehicle. Great Wall also can draw on strong demand in China, the biggest auto market by units sold. Kuldeep is responsible for the technical part of Automaker TV & Media’s websites.
In February 2016, automakers finally admitted that, while some of their cars can meet the EU’s NOx emissions limits in laboratory testing, they couldn’t meet the same standards on real roads. Fiat Chrysler’s ties to China have been growing in recent years after the company made an effort to re-enter the market and try to catch up to other global rivals that had zoomed past the Auburn Hills automaker in Asian. Deal counts are up, more automakers are investing and more big rounds are getting done.
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.