Great Wall denies buyout of Jeep brand from Fiat Chrysler Automobiles

Chinese automaker Great Wall Motors denies it has made any progress on a reported buyout deal with Fiat Chrysler Automobiles, and will resume trading on Wednesday.

The company announced to suspend trading at the Shanghai bourse on Monday.

In response to market rumors regarding a potential interest of Great Wall Motors in Jeep brand, FCA also confi rmed that it has not been approached by Great Wall Motors in connection with the Jeep brand or any other matter relating to its business.

The company also said that it is implementing its 2014- 18 business plan, “having achieved each one of its targets to date and with only six quarters left to its completion.”

On Monday, Reuters quoted sources as saying that Great Wall has an intention to acquire Jeep, and had asked for a meeting with FCA with the aim of making an off er for all or part of the auto group, whose brands include Jeep, Ram, Alfa Romeo and Maserati.

SUVs have been a pillar of sales for Great Wall, which has an ambitious global expansion plan aiming to sell Haval SUVs in the US. The automaker plans to build two research centers in Los Angles and Detroit by the end of 2017 for technology transfer, according to media reports.

“Acquiring Jeep would accelerate the domestic auto manufacturer’s further ambitions for SUVs by working with a well- recognized brand, but it will also face a number of uncertainties given Jeep’s disadvantage in energy effi ciency and environmental protection,” Cui Dongshu, secretarygeneral of the China Passenger Car Association, was quoted as saying in a yicai. com report.

Analysts pointed out that the Jeep brand would have a price tag of more than $ 20 billion, posing a fi nancial hurdle for Great Wall, said the report. In 2016, the company’s revenues stood at $ 14.76 billion, while that of FCA recorded $ 131 billion.

“The story is diff erent from [ Chinese automaker] Zhejiang Geely’s acquisition of foreign brand Volvo, whose market value is smaller than the Chinese counterpart,” Cui noted.

FCA’s potential deal with a Chinese partner may also receive opposition from US President Donald Trump, considering his protectionist views on the economy, fortune. com reported.

Last week, media reported that a Chinese automaker had made a bid to acquire FCA. Guangzhou Automobile Group, Geely Automobile Holdings and Dongfeng Motor Group have all denied plans to acquire FCA.