Chinese Zhejiang Geely Holding interested in FCA – Offers to be considered after realization of plans for 2018

The heads of Fiat Chrysler Automobiles, who discussed a potential takeover of the company with representatives of the Chinese holding Zhejiang Geely Holding Group in Geneva, say that they will be ready to consider all the offers, but only after the business plans for 2018 are realized.

– Let the market assess the value of the 2018 plan and then at some point in time if people are interested they should come back and talk, not now – Chief Executive Officer Sergio Marchionne told reporters Tuesday at the Geneva International Motor Show, Bloomberg reports.

– Until that process is complete and the market recognizes the value of what has been accomplished, any discussion we are having in acquiring anything is nonsense – Marchionne says.

The value of FCA shares rose by 5%, the biggest increase this month, and were trading at EUR 16.96. Marchionne confirmed Geely “showed up” and had meetings with Fiat executives before Li Shufu, owner of Geely, announced last month the purchase of a 7.3 billion-euro stake in Daimler.

This is the biggest investment of a Chinese company in an international car manufacturer so far. Li contacted the management of the Italian-American car manufacturer FCA in mid-2017, looking into options for expanding operations outside China.

They didn't make a concrete offer at the time, as the two sides had different views of the future value of Fiat Chrysler. The Chinese holding also bought a 3 billion-euro stake in Volvo's truck manufacture business.

As Geely and other Chinese automakers seek to expand in Europe and the U.S, Marchionne has been a vocal proponent of consolidation, arguing that the industry wastes money by developing multiple versions of the same technology. However, since General Motors Co. rebuffed his idea for a merger in 2015, the CEO has switched gears to cutting debt and has said the carmaker no longer needs a partner, Bloomberg adds.

FCA Srbija Kragujevac

Fiat Chrysler Automobiles

Zhejiang Geely Holding Group

FCA

Daimler

Volvo

Fiat

Sergio Marchionne

Li Shufu

car industry

automotive industry

car manufacture

Geneva International Motor Show

Geneva