Tuesday, August 22, 2017

GWM may buy Jeep, or Ram from FCA. Hold the phone?!!

It is time to inform you of China's leading sport utility vehicle (SUV) maker, Great Wall Motor. The company goes by the acronym, GWM; and the huge Chinese automotive firm is trying to acquire Jeep from Fiat Chrysler Automobiles (FCA). Forty eight hours ago, executives from Great Wall Motor made it clear that they wanted to buy Jeep. Today, the Great Wall Motor co. is doing an about face by stating that there are huge obstacles to overcome before the deal can go through. The Trump admin. and other higher ups' in Washington DC would have a tough time approving this merger. Also, FCA exec. have said that Great Wall Motor co. did not approach them with 'let's make a deal.' Fiat Chrysler CEO Sergio Marchionne has mentioned that a new partner, in the automotive world could help FCA to become a more nimble company. Yet, Volkswagen and General Motors declined Sergio's offers in the past two years. Marchionne has mentioned in the past, that Jeep or Ram brands could be sold before 2017 ends. Both brands are the FCA's main moneymakers. If Jeep or Ram were to be sold, the brand's development teams would be gone as well. Both of the brands have strong development teams, which would bring a large amount of automotive and engineering knowledge to help their new company(s). Furthermore, the following three brands of Dodge, Maserati, and Alfa-Romeo; would have to produce a major uptick in sales if Jeep or Ram were to be sold off. Jeep is projecting global sales of 2 million vehicles, a nearly four-fold increase from the start of the five-year FCA plan initiated in 2013. This sales projection is an outlandish one for 2018, for Jeep to achieve. At this time, the global automotive world is experiencing a massive SUV boom like never seen before. Fiat has old headquarters in Turin, Italy; and current headquarters in London, UK. FCA is registered in the Netherlands, and Chrysler has a huge domestic base in Auburn Hills, Michigan. All four of these countries (US; England; Italy; and the Netherlands) would have to vote 'yes'; before any major deal is made. The selling of Jeep, or Ram would face tough market scrutiny from Europe, Asia, and North America. China has tried to enter the US automotive market for the past decade, but it has been unsuccessful in each attempt. FCA is the world's seventh largest auto manufacturer. Lastly, Mr. Marchionne is the top man at the following companies: CNH Industrial, FCA, Ferrari, Maserati, and SGS (swiss based MNC). It is incredible how he helps his employees to manage all of these well known firms, on a global scale. Enjoy the picture above of Great Wall Motor, with its well-crafted slogan. As for Sergio Marchionne, he bids you with 'addio.'

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