NEW YORK – Fiat Chryslers Automobiles (FCA) CEO Sergio Marchionne said on October 9 that his company is not considering selling Jeep as a separate entity to Chinese rival Great Wall Motor Co., Ltd.
Marchionne made the comments while speaking to reporters at the New York Stock Exchange, confirming that Ferrari NV will be making its first SUV, according to a Bloomberg report.
“A deal with Great Wall wouldn’t make sense, at least today, because the two companies have no market overlap and wouldn’t achieve greater scale together,” said Marchionne. He stressed that FCA would produce better returns by combining with another automaker, but it hasn’t had any offers from a suitor that meets his criteria, so he’s focusing on an independent strategy for the carmaker, the Bloomberg report said.
“It’s incorrect to assume that FCA’s future hinges on doing a deal,” the report quoted him as saying.
Great Wall, China’s leading SUV manufacturer, was rumored in August to have been in talks with FCA over the acquisition of Jeep. FCA responded to the rumors by issuing a statement on August 21 saying that FCA has not been approached by Great Wall in connection with the Jeep brand or any other matter relating to its business.
Rumors have died down since then as Great Wall continues to expand its core Haval SUV brand and build its WEY luxury SUV brand and FCA continues to look for suitors and spending heavily on a global expansion of the Jeep brand.