Chinese Automaker Geely Looked At FCA Before Investing $9 Billion In Daimler

After last week’s announcement of a $9 billion Daimler stock buy-up by China’s Geely Group, an old story is once again rearing its head. Remember last year’s buzz surrounding a possible takeover of Fiat Chrysler Automobiles? The rumors CEO Sergio Marchionne subsequently refuted? Yes, that story.

A new report claims Geely did indeed give FCA the once-over, even engaging in preliminary talks. Obviously, this first date went nowhere, as Geely now owns nearly 10 percent of German auto giant Daimler, not the maker of Jeeps and Rams.
Read Article

TheSteve - 2/28/2018 1:24:02 PM

+1 Boost

According to readily available stats, FCA scores at or near the bottom of automotive surveys, such as (most) defects per new vehicle, and other metrics. Aside from the iconic Jeep, FCA is just not something one aspires to. I guess that Geely saw that, too.

MDarringer - 2/28/2018 9:19:55 PM

0 Boost

Jeep and Ram are worth a BUNDLE. Sergio is the issue.

malba2367 - 3/1/2018 9:44:27 AM

+2 Boost

Sergio is not the issue...he is a pretty brilliant financial engineer that has kept these companies afloat. The problem is Fiat, which is in so bad shape no one in their right mind would even take it for free if it were split off of FCA.

malba2367 - 3/1/2018 9:47:03 AM

+2 Boost

Foncool - 3/1/2018 9:50:28 AM

+2 Boost

Step 1 FCA pays off remaining debt. Step 2 Maserati, Alfa Romeo along with Fiat auto spun off. Step 3 Jeep, Ram etc sold off to either Koreans or Chinese. Step 4 Maserati Alfa etc either becomes a subsidiary of Ferrari or is IPO’d as a sister company to Ferrari. Net result. FIAT becomes the same company it was before the Obama administration gave Chrysler to FIAT, but is now flush with cash and has had its Maserati/Alfa rebuilt with new product platforms and revamped factories.

PUGPROUD - 3/1/2018 2:02:14 PM

0 Boost

Never thought I would see Sergio and brilliant in the same sentence. Having negotiated over 150 mergers and acquisitions between $1 million-$12 billion during a 33 year career my position is that he has clearly been an inept amateur in his efforts to join forces within the industry. A brilliant man knows what he doesn't know. Sergio's ego gets in his own way, always thinking he is the smartest man in the room no matter the subject. He isn't. No one is. He has likely gotten sound advice from professionals in the area but refuses to accept it.

Foncool - 3/1/2018 5:22:45 PM

+2 Boost

Really? How much did Sergio pay for control of Chrysler? Zero. How much did Daimler Benz pay for Chrysler in the merger of equals? 36 Billion, how much did Daimler get when they sold Chrysler to Cerberus? 7.4 Billion. 27 Billion dollar loss. How much did VW pay Vickers for Rolls Royce/Bentley? 780 million. How much did BMW pay for Rolls Royce after VW realized its 780 million dollar purchase didn't include the use of the Rolls Royce name and logo? 65 million.

In the end Sergio is going to sell off the Chrysler part of FCA, and the Agnelli's are going to pocket a lot of cash. They are going walk away owning everything they brought to the merger with revamped factories and new modern platforms for its cars. I'd say that is brilliant.