China’s Great Wall eyes Fiat Chrysler bid

China's Great Wall Motor is sizing up Fiat Chrysler, the ItalianAmerican carmaker that also owns Jeep.

A Great Wall official told Reuters it had "an intention to acquire" some or all of the world's seventhlargest car maker.

However, Fiat Chrysler said it was yet to receive an approach from Great Wall - China's biggest SUV maker.

Earlier reports said the Chinese firm had asked to meet Fiat executives to discuss buying the Jeep brand.

Jeep, which celebrated its 75th birthday last year, is considered FCA's most valuable asset.

Its reputation dates back to World War Two, when Jeeps were used extensively by the US military.

Shares in Fiat Chrysler Automobiles rose 3.5% in Milan on Monday and have jumped more than a quarter this year, valuing the company at about $19bn.

However, the Jeep brand alone could be worth as much as $27bn, according to Morgan Stanley analysts.

Jeep sold 1.4 million vehicles last year and aims to shift 2 million vehicles annually by 2018.

Great Wall sold just over 1 million vehicles last year - mostly in China, which is now the world's largest car market.

Bill Russo, a former Chrysler executive now with Gao Feng Advisory Group, said he believed Great Wall wanted Jeep rather than all of FCA and its debts of about $4.9bn.

"Jeep is the crown jewel of Fiat Chrysler in terms of brand and equity," he said.

Great Wall is known for its SUVs, vehicles, which are popular in China, so a deal would be "quite complementary", Mr Russo added.

Yale Zhang, head of Shanghaibased consultancy Automotive Foresight, said: "Jeep is the most logical choice, since [Great Wall] wants to be the largest SUV maker in the world.

"The Jeep brand is recognised globally. I think Great Wall Motor is eyeing a global strategy, not just the United States."

Earlier this year, it officially launched a new premium SUV brand called Wei, which potentially could tap into the US market.

Fiat Chrysler chief executive Sergio Marchionne is seeking a partner or buyer to help it manage rising costs, emissions regulations and the development of electric and self-driving cars.

FCA also owns Alfa Romeo, Maserati and RAM trucks.