Chinese looking to buy FCA

[Brons2]

Originally Posted By: PimTac
The shotgun marriage killed Fiat. Attaching themselves to a boulder with hopes of expanding into the US market. It was a huge pipe dream.

Jeep fans are some of the most loyal around. This sale to Great Wall or whoever will kill the Jeep name.
]

They also spent a metric ton of money trying to revive Alfa Romeo, I have read. Rumored 6 billion. I think Marchionne (sp?) got a little big for his britches.

 

[PimTac]

I've heard that as well. All they got out of it was a nice looking crossover that spends most of the time on the racks. The Stelvio it's called. Looks good except for that nose.

 

[HerrStig]

Originally Posted By: goodtimes
They bought Volvo. They buy real estate like candy. Just have too much money and don't know what to do with it. I think it is a big problem and shouldn't be allowed, but won't be around long enough to see the outcome of all this.
When the Japanese were flush they bought a bunch of overvalued real estate in Manhattan and later lost their shirts on it.

 

[chrisri]

Alfa Romeo and Maserati are out of deal, rest can go. Just leave the AR, Maser and IVECO. FIAT brand is so prostitutised over years that it could only GAIN some reputation after Chinese takeover.

 

[itguy08]

Originally Posted By: PimTac
Fiat has been trying to unload Chrysler for some time now. The shotgun marriage was doomed from the start.


Everyone that "tries" Chrysler realizes it's a dead end junk company.....

* Daimler
* Cereberus
* Fiat

Again, nothing special about them and they should go the way of Rambler, Dusenberg, Studebaker, Hudson, etc. Why do we need to keep them around? They have been a drag on the USA since, well post WW2.

 

[Andrew1972]

Originally Posted By: itguy08
What will this be - owner #6 or #7 for FCA/Mopar? Time to let them die already. Few will miss them.


Every automaker out there wants Jeep. There is no brand that offers so much profit and demand. They also have a profitable minivan segment. The rest of vehicles in lineup for every owner seem to languish with some occasional hits.

It appears that RAM is profitable but not idea.

 

[Garak]

The last thing Sergio Marchionne needs is more free time on weekends. If this happens, though, on the other side of the equation, Chrysler oil specs will include ordinary API, some Chyrsler proprietary ones, some MB ones, some Fiat ones, and then, if this comes to pass, a knockoff, unlicensed monograde.

 

[KrisZ]

Originally Posted By: Garak
The last thing Sergio Marchionne needs is more free time on weekends. If this happens, though, on the other side of the equation, Chrysler oil specs will include ordinary API, some Chyrsler proprietary ones, some MB ones, some Fiat ones, and then, if this comes to pass, a knockoff, unlicensed monograde.

The Chinese will spec Mobile 1...

 

[FermeLaPorte]

This sounds bad. For both parties.

 

[4WD]

This marriage would tie them with Liz Taylor

 

[SZR48207]

I dislike FCA as much as the next guy, but a brand being owned by a foreign entity does not automatically mean manufacturing will go that way as well. There will be pressure from certain parties to keep the plants open in the US and to maintain US jobs, but the profits will of course go back to China.

I think FCA would do well if they would adopt the Honda or Toyota model. Make a [censored] good affordable appliance car and stop putting money into niche projects like the Hellcat or (now dead) Viper.

 

[rshaw125]

Does this mean the US taxpayer might finally get their $$$ back?????

 

[jeepman3071]

Originally Posted By: Reddy45
I dislike FCA as much as the next guy, but a brand being owned by a foreign entity does not automatically mean manufacturing will go that way as well. There will be pressure from certain parties to keep the plants open in the US and to maintain US jobs, but the profits will of course go back to China.

I think FCA would do well if they would adopt the Honda or Toyota model. Make a [censored] good affordable appliance car and stop putting money into niche projects like the Hellcat or (now dead) Viper.


Or spend more money on product development and quality control instead of CEO bonuses and helicopters.

 

[SF0059]

Google "Chinese investment in US slows" and read the stories. Too many to list here. Suffice to say, the Chinese government has recently put a pretty big chill on foreign investment. Part of the impetus is the anticipated exchange rate in 2017-18 and also signs of Chinese investors being over-leveraged as with the recent financial difficulties of the likes of LeEco, Suna, and Dalian Wanda.

I don't see this happening in the current economic climate... it would just require too much capital. FCA may have been courting the Chinese, but I think that they were too late to find a savior there. At least for the next few years.

 

[itguy08]

Originally Posted By: madRiver
Every automaker out there wants Jeep. There is no brand that offers so much profit and demand. They also have a profitable minivan segment. The rest of vehicles in lineup for every owner seem to languish with some occasional hits.


Why? Sure it's an "iconic brand" but that's about it.

Jeep owners are no more or less loyal than other brands:
http://news.ihsmarkit.com/press-release/...-awards-present

They are having sales declines too:
http://www.freep.com/story/money/cars/chrysler/2017/07/23/jeep-sales-dip-new-vehicles/476488001/
https://www.fool.com/investing/2017/04/04/sagging-jeep-sales-are-hurting-fiat-chrysler-autom.aspx
http://www.autonews.com/article/20170601/RETAIL01/170609971/fca%3A-9th-straight-decline-as-jeep-struggles

 

[SZR48207]

Originally Posted By: jeepman3071
Originally Posted By: Reddy45
I dislike FCA as much as the next guy, but a brand being owned by a foreign entity does not automatically mean manufacturing will go that way as well. There will be pressure from certain parties to keep the plants open in the US and to maintain US jobs, but the profits will of course go back to China.

I think FCA would do well if they would adopt the Honda or Toyota model. Make a [censored] good affordable appliance car and stop putting money into niche projects like the Hellcat or (now dead) Viper.


Or spend more money on product development and quality control instead of CEO bonuses and helicopters.


This is probably an area where East Asian culture has an upper hand. There is a strong "the nail that sticks out gets hammered" mentality that keeps CEOs in Japan from going overboard with the compensation. I'm sure FCA would claim that they couldn't adopt such a model because it would somehow prevent them from getting talented leadership.

 

[jeepman3071]

Originally Posted By: itguy08
Originally Posted By: madRiver
Every automaker out there wants Jeep. There is no brand that offers so much profit and demand. They also have a profitable minivan segment. The rest of vehicles in lineup for every owner seem to languish with some occasional hits.


Why? Sure it's an "iconic brand" but that's about it.

Jeep owners are no more or less loyal than other brands:
http://news.ihsmarkit.com/press-release/...-awards-present

They are having sales declines too:
http://www.freep.com/story/money/cars/chrysler/2017/07/23/jeep-sales-dip-new-vehicles/476488001/
https://www.fool.com/investing/2017/04/04/sagging-jeep-sales-are-hurting-fiat-chrysler-autom.aspx
http://www.autonews.com/article/20170601/RETAIL01/170609971/fca%3A-9th-straight-decline-as-jeep-struggles



The Jeep Wrangler has the market cornered because there isn't really another vehicle that directly competes with it. The Jeep Wrangler Sahara unlimited (4 door) is insanely overpriced for what you get, yet somehow they are everywhere around here. My sister's friend (a 20 year old college student) took out a crazy high interest loan just to afford one.

The salesman at the Jeep dealership was upset with the jokes I made about the fact that they actually offer a Wrangler for over $20k that doesn't have air conditioning.

 

[IndyIan]

Originally Posted By: itguy08
Originally Posted By: madRiver
Every automaker out there wants Jeep. There is no brand that offers so much profit and demand. They also have a profitable minivan segment. The rest of vehicles in lineup for every owner seem to languish with some occasional hits.


Why? Sure it's an "iconic brand" but that's about it.

Jeep owners are no more or less loyal than other brands:
http://news.ihsmarkit.com/press-release/...-awards-present

They are having sales declines too:
http://www.freep.com/story/money/cars/chrysler/2017/07/23/jeep-sales-dip-new-vehicles/476488001/
https://www.fool.com/investing/2017/04/04/sagging-jeep-sales-are-hurting-fiat-chrysler-autom.aspx
http://www.autonews.com/article/20170601/RETAIL01/170609971/fca%3A-9th-straight-decline-as-jeep-struggles


I think alot of people buy one Wrangler in their lifetime atleast, get it out of their system and may or may not get a Cherokee or Grand Cherokee to replace it. No other model that I can think of except perhaps the Mustang, has that kind of drawing power.

 

[wemay]

Originally Posted By: OVERKILL
That would be awful if it were to happen.

Also, side note, I didn't know Pirelli was sold to the Chinese???!!!


Pirelli, GE, Motorola, Volvo, MG, Smithfield Hams, Club Med, Hoover, Dirt Devil, Waldorf Astoria, AMC theaters, Sunseeker ultra exclusive yachts, etc.

 

[Andrew1972]

Originally Posted By: itguy08
Originally Posted By: madRiver
Every automaker out there wants Jeep. There is no brand that offers so much profit and demand. They also have a profitable minivan segment. The rest of vehicles in lineup for every owner seem to languish with some occasional hits.


Why? Sure it's an "iconic brand" but that's about it.

Jeep owners are no more or less loyal than other brands:
http://news.ihsmarkit.com/press-release/...-awards-present

They are having sales declines too:
http://www.freep.com/story/money/cars/chrysler/2017/07/23/jeep-sales-dip-new-vehicles/476488001/
https://www.fool.com/investing/2017/04/04/sagging-jeep-sales-are-hurting-fiat-chrysler-autom.aspx
http://www.autonews.com/article/20170601/RETAIL01/170609971/fca%3A-9th-straight-decline-as-jeep-struggles



Loyalty does not matter with Jeep. Folks snap them up with massive profit to Jeep with Grand Cherokee and Wranglers. A downturn in sales does not mean profit per vehicle sold is not diminishing I believe majority of profit in FCA is Jeep the rest only providing about 1/3 to 1/4 of it.

Jeep as others said is one time purchase for vast majority. Locally I know 25 folks who purchased a 4 door Jeep brand new in last 4 years. Jeep is making massive coin off those.