Great Wall Motors Interested in Acquiring Fiat Chrysler


"With respect to this case, we now have an intention to acquire".

China's Guangzhou Automobile Group Co Ltd on Thursday denied reports of any plans of Fiat Chrysler takeover and dismissed all the reports as mere media speculations.

Fiat Chrysler (FCAU) shares were up Monday morning, after another Chinese carmaker confirmed its interest in buying the company.

The US auto industry publication Automotive News reported earlier that Great Wall Motor president Wang Fengying had said in an email that her company meant to buy FCA's Jeep brand.

Earlier on Monday, two people familiar with the matter said Great Wall Motor had asked for a meeting with FCA, with the aim of making an offer for all or part of the Italian-American auto group.

It remained unclear whether the Chinese company was interested in pursuing all or parts of the owner of brands including Jeep and truckmaker Ram.

"Our strategic goal is to become the world's largest SUV maker", Automotive News quoted the spokesman as saying, referring to sport utility vehicles.

Jeep, Automotive News noted, is "the jewel in FCA's crown" as the brand's reputation dates back from World War II.

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Shares last traded at $12.57 quite a bit above $11.83, the stock's 50 day moving average and a great deal higher than the 200 day moving average of $11.08.

Yale Zhang, head of the Shanghai consultancy Automotive Foresight, commented: "Jeep is the most logical choice since (Great Wall) wants to be the largest SUV maker in the world".

DekaBank Deutsche Girozentrale raised its position in shares of Fiat Chrysler Automobiles N.V. (NYSE:FCAU) by 12.1% during the second quarter, according to its most recent filing with the SEC.

Great Wall's "interest in purchasing FCA highly fits our professional development path and strategy of globalisation", the spokeswoman said.

As Chinese automakers like Zhejiang Geely acquire foreign brands such as Volvo (volvy), Great Wall is seeking its own piece of the potential profit from Europe and the U.S. Acquiring Jeep would allow Great Wall to enter the premium market with a well-recognized brand.

Zhou Mi, a Wuhan-based spokesman for Dongfeng Motor said, "We now have no plans".

The company this year launched its Wei brand of potentially US-market-ready vehicles. Wei is the last name of Great Wall Motor founder and chairman Wei Jianjun.