GAC Rumored to Buy Majority Stake in Fiat Chrysler Automobiles

GAC-FCA Jeep Renegade (China model) 1 photo
Photo: GAC-FCA
As per a report published by an Italian publication, Guangzhou Automobile Group Co., Ltd. (or GAC for short) is interested in buying a majority stake in Fiat Chrysler Automobiles (FCA). Why would the GAC be interested in such an ordeal is beyond me, but then again, the Chinese work in mysterious ways.
Is Il Giornale smoking the good stuff or is the publication on to something with the story regarding GAC’s interest in FCA? First, bear in mind that Fiat Chrysler Sergio Marchionne attended the 2016 Chinese Grand Prix in Shanghai. A day after the race, the GAC-FCA joint venture started production of the Jeep Renegade in the Middle Kingdom.

Secondly, the head honcho of Fiat Chrysler Automobiles is in search for a merger candidate. After Ford, General Motors, Toyota, and Volkswagen said no, it’s only natural to presume that GAC could become that merger candidate in the near future. Thirdly, FCA wants someone to take the Dodge Dart and Chrysler 200 off its hands. As we highlighted in a previous story, the consortium is no longer interested in these models.

Furthermore, the Guangzhou Automobile Group has lots of money at its disposal, money that could be spent on a piece of the Fiat Chrysler Automobiles pie. It’s rather clear, then, that the circumstances point to a merger or at least an opportunity for Guangzhou Automobile Group to expand outside of China.

The detail that will make some eyebrows rise is that GAC will exhibit at the 2017 Detroit Auto Show. “As we look to establish ourselves as a global brand we are optimistic we can gain more momentum following the announcements we will make this coming January in Detroit,” said Zeng Qinghong, the vice chairman president of GAC. I’m not the one to add fuel to the fire, but GAC and FCA are definitely interested in each other.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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