Chinese Investors Are REALLY Interested In BUYING Fiat Chrysler

Sergio soon will have sold Dodge, Chrysler, Ram, and Jeep to the Chinese.

Got to be Gheely. I don't recall ever seeing any Chrysler product in Shangahi or Ningbo except a handful of Jeeps although I was more focused on the ladies to be honest. Buick on the other hand...

Any potential buyer would have to be a fool to get involved in Fiat (unless they have some sort of government backing/ownership that is willing to absorb losses and legacy costs)...that mess is big enough to threaten the survival of even Toyota or VW.

The deal would be expensive and the financials a bit ugly. Whatever unit a buyer may selected FCA would likely want it to come with a good chunk of corporate debt. I could see negotiations falling apart. It just is not appetizing when you look at the big picture. Maybe a merger is in the offing instead.

I seriously doubt that Sergio is interested in any Partial sell off of brands.

TomM- That's why I think a merger is the most likely outcome. Sergio has said he would be interested in merging with GM. He thinks you need larger scale and more sharing of platforms to make a go of it profitably in todays market. Time will tell.

I agree that a merger is the more likely outcome - although I do not expect it to be GM - who will likely NOT want to get back into Europe with Fiats offerings when they had problems selling their own far superior product from Opel. GM has already paid a Billion Dollars NOT TO BUY Fiat in the past - and that has been the smart move.

THe problem I see is that - without GM or FORD (and Ford would have no interest at all) - it would either be Japan or China - and I believe that China ownership would negatively affect Jeep - which is the only prize. I cannot see either of the French - certainly not VW or Bmw or Mercedes. AND if I think that chinese ownership would affect Jeep badly - I can only Imagine what would happen in Italy - the only FIAT stronghold because they are nationalistic about LOCAL made cars more than any of the other countries.

Something I forgot to mention. Think of the HIT to the economy that would happen should FCA be bought by Gm or Ford. No Doubt - there would be Manufacturing plant re-alignment - Probably many closed dealership - likely the closing down of several production lines because the product would need to be replaced.

No need at all for Chrysler - especially with Buick at GM. AND Gm does not need Dodge as entry level - nor would it be a "performance" brand - the cars are also in need of replacement there. Where would JEEP be sold - Buick already has GMC. IF gm did mere with FCA - I am sure the first thing they would do is sell Fiat.

A merger is the LEAST likely outcome. FCA is an umbrella, holding company to two legally separate car makers. In one subsidiary there is Chrysler/Dodge/Jeep/Ram and in the other is Fiat/Alfa Romeo/Maserati. Either half or both can be sold.

Chrysler/Dodge/Jeep/Ram is an easy and lucrative deal for the Chinese.

Sergio is muddying the waters by saying Fiat is available. He has to see overcapacity at VAG, PSA, and Renault and realize that inevitably brands will die. Fiat being by far the most precarious brand for its lack of a good product portfolio will die sooner or later. He wants someone else to be stuck with the mess.

My guess is that the Chinese will counter with more money and with a stipulation that Fiat NOT be a part of it.

I don't think any global car maker is interested...there is nothing besides Jee that is worth getting out of bed for. It may be attractive to a Chinese automaker to get a dealer network and tier I automaker know how/ supplier contracts overnight. The US side alone would be a great buy for a Chinese automaker, but with the Italian side also it is a huge liability for anyone to take on. Toyota has been making smart moves with Subaru/Mazda to keep them out of Chinese hands.

GM "sold" Opel to PSA for $2.3 billion.... what isn't widely reported is that they immediately had a "one time cash charge" of $4.5 billion related to the transaction and they retain $6.5 billion in pension liability. Fiat is in even worse shape than GMs Europe division. Europe is a hellish place to make and sell (non premium) cars due mainly to onerous labor regulations. VW can succeed because they are the market leader and can keep their factories/employees working at 100% capacity, but for the smaller players it is a very difficult place to be.

Geely is the most likely suitor. Volvo could be leveraged for sedans and crossovers for Chrysler and Jeep and that would quickly help amortize development costs of what Volvo has already done. Geely FWD products could quickly be pressed into service given that Volvo has also been essential to their development. A new Ram is nearly here, so that's a solid. I would imagine Geely would retain access the the RWD platform under the Giulia for RWD muscle products for Dodge. Chrysler, Dodge, Jeep, and Ram could actually proper under a scenario like this.

A buyout is tremendously great news and I'm hoping that Sergio doesn't screw it up.

I think Fiat would still be part of the deal with Jeep, Dodge, and Ram. Alfa and Maserati would probably be sold to some Euro Manufacturer. If VAG does not bid for it I could see Renault or PSA. Both Maserati and Alfa are storied brands in Europe with a well known history. I suspect they will be bought as a package. VAG could scuttle Seat and include Alfa with it's lower tiered products from VW or Skoda. Maserati could easily be incorporated into the luxury portfolio of Audi, Lamborghini, Porsche and Bentley. While Fiat does not sell well in the US it does Ok in in South America and Europe. Therefore I see Fiat surviving but leaving US shores.

The ONLY reason Fiat would be a part of the deal is to shift the blame away from who caused its death. Decades of Italian idiocy and incoherence would be wiped away if Fiat died under Chinese watch.

The ONLY reason Alfa Romeo and Maserati are NOT a part of the deal is Italian bigotry. The Italians are OK FCA-ing over Chrysler, but no one can have Alfarati.

Ferrari was spun off just before a previous spate of merger/buyout hysteria.

Hmm. Chinese buy it all. Jeep, Dodge, Chrysler are part of Asian operations. Ferrari, Alfa Romeo and Maserati become an independent company owned by investors and private equity with the Chinese maintaining a stake. And Fiat is wound down with plants sold to other Chinese firms who want them.

you'd be better of loading up a giant ship with a few billion in gold, and sinking it in the middle of the pacific. now that i think about it, this is a great idea for the Chinese. make america great again! only request is to save Jeep (and fix its reliability)