Chinese automaker considers acquisition of the Jeep brand
China is trying to clamp down on overseas acquisitions by its companies. Hostility is growing in the United States toward Chinese deals. And the auto industry faces substantial change in the form of battery-powered vehicles and autonomous cars.
None of that deterred Chinese automaker Great Wall Motor Co. from saying Monday that it was interested in buying the Jeep brand — a quintessentially American car known for its sport utility vehicles and pickup trucks, but which also has a strong resonance in China.
Fiat Chrysler Automobiles, the Italian-controlled company that owns Jeep, said, however, that it had not heard from Great Wall.
Still, the comments from Great Wall signal China’s continuing interest in becoming a global force in the auto industry. Chinese carmakers have shown interest in expanding outside their home market in recent years, and the fastest way to do that would be to acquire an existing automaker.
Fiat Chrysler is an obvious target because its chief executive, Sergio Marchionne, has signaled interest in finding a buyer.
The seriousness of Great Wall’s interest in a deal could not immediately be determined, and a company spokeswoman declined to say whether the two parties had even met.
In a statement Monday, Fiat Chrysler said it had “not been approached by Great Wall Motors in connection with the Jeep brand, or any other matter relating to its business.” The automaker’s shares were nevertheless up 4 percent in Milan.
Jeep has a strong link to China, as it was one of the first foreign brands to enter the country, initially shipping parts to China for assembly in the late 1970s, before a joint venture called Beijing Jeep was created in 1983.
Great Wall’s expression of interest might prod other suitors to come forward and start a process that could lead to Fiat Chrysler’s sale or breakup. Companies such as Volkswagen might be interested in parts of Fiat Chrysler such as Alfa Romeo, a maker of small and midsize passenger cars known for their Italian styling.