China’s Great Wall emerges as potential bidder for Fiat Chrysler

THE future of Fiat Chrysler Automobiles (FCA) has been thrown into confusion after Chinese carmaker Great Wall Motors said it planned to buy parts of the Italian-american automotive business – a claim that was quickly refuted by FCA.

Shares in FCA surged 6.9pc in Milan after Great Wall said it “intended” to make a move for carmaker, stepping into the spotlight after a week of rumours swirling around the identity of a potential bidder.

Industry analysts believe Great Wall – which is focused on SUVS – could be eyeing FCA’S Jeep brand, as it looks to bolster its range of rugged vehicles.

However, FCA attempted to quash the speculation, saying in a statement that it “had not been approached by Great Wall relating to Jeep or any matter relating to its business”, and adding it was “fully committed” to its longterm business plan.

FCA shares, which have risen 10pc over the past week on deal hopes, rose 6.9pc to a 19-year high after Great Wall’s statement.

“There is an intention to make the purchase,” the spokesman said, though he refused to be drawn on whether Great Wall was looking to buy all of FCA or snap up particular brands.

As well as Fiat, Chrysler and Jeep, FCA owns the Alfa Romeo, Dodge, Lancia, Maserati and Ram trucks marques. It also owned Ferrari until early last year, when FCA chief executive Sergio Marchionne spun off the famous sports car brand into a public company.

FCA – which has a market value of €16.4bn (£15bn) – is the eighth-largest car manufacturer in the world according to industry analyst JATO Dynamics.

The research house’s data showed in the first quarter of 2017, FCA sold 1.153m cars, making it about half the size of VW Group and Toyota, who battle for the title of the world’s largest carmaker.

By comparison, Great Wall sold 226,062 vehicles in the first three months of the year, making it the 19th biggest carmaker.

Prof David Bailey, a car industry analyst at Aston University, said: “Great Wall is very keen to get into the SUV products of FCA.

“Jeep could be a way of doing that and would certainly lend it a certain cachet having the Jeep brand.”