Fiat Chrysler puts brakes on talk of Chinese offer for Jeep brand

FIAT Chrysler has again attempted to end speculation that it could sell part of its portfolio with a statement made at the behest of the Italian financial regulator in the wake of a surge in the car manufacturer’s share price.

Shares in Milan-listed Fiat Chrysler Automobiles (FCA) have risen almost 20pc in the past week as rumours swirled that Great Wall Motors, the Chinese firm, wanted to buy the Italian-american group’s Jeep brand.

On Monday, Great Wall said it had “an intention to make the purchase”, but soon backed away from the statement, adding it had “not generated concrete progress as of now”.

FCA, headed by Sergio Marchionne, released a statement later that day saying it “had not been approached by Great Wall relating to Jeep or any matter relating to its business”. However, FCA’S shares have continued to rise despite the denials, prompting the release of this latest statement. “At the request of the Italian stock exchange regulator, Fiat Chrysler Automobiles confirmed that it has no further information to report in response to market rumours beyond its statement already issued on Monday,” the statement said.

“From time to time, FCA may receive inquiries about potential strategic transactions and will evaluate such inquiries consistent with its duties to stakeholders. As a matter of policy, FCA does not comment on market rumours and therefore does not intend to make any comment on any inquiries.”

Shares in FCA closed down 1.7pc at €12.40 yesterday. Buying Jeep would bolster Great Wall, which is largely focused on SUVS, and acquiring the famous off-road marque would be a coup for the company. While both FCA and Great Wall have tried to quash deal talk, observers think that the speculation could flush out fresh bidders.

Philippe Houchois, a Jefferies analyst, said the talk meant FCA was now “in play” and predicted that an approach from a Chinese company was most likely. “Chinese manufacturers don’t have the option of leveraging excess home profits and foreign exchange to become global, making M&A with government blessing a logical next step,” he said.

A sale of one of the FCA marques – it also owns Alfa Romeo, Dodge, Lancia, Maserati and Ram trucks – could give the company the financial firepower to help it develop new technologies. It recently joined a consortium consisting of BMW, Intel and automotive technology groups Delphi and Continental to develop systems for self-driving cars.

However, the sale of such an historic American brand could face hurdles in the form of the protectionist Trump regime, which has pledged to support the US car industry.