Fiat / Chrysler rejects Chineese automakers buying bid

Its not on the same scale, but remember: Sears sold off Craftsman. . .

great example. good brand inside a struggling company had to be sold.

FCA aint the basket case Sears is .. Sergio is trying to act before that happens so maximum value of FCA's assets is realized.

Either by divesting, alliances, and/or selling whole thing ..the latter least likely of all to me.

least likely of ALL outcomes is running FCA as its configured today .. it cant survive the "car wars" ahead.
 
I fear, too that the Chrysler&Dodge nameplate could be gone in the not so far future
From a pure marketing perspective that wouldn't seem to make any sense in NA. Can't see anyone buying a "Great Wall" Chrysler. If I were betting the Chrysler Dodge names will survive albeit with Chinese ownership.
 
heard on radio today Great Wall is "cooling" on FCA. Maybe true, maybe posturing .. who knows. Also learned they are 1/3 the size of FCA .. makes them LESS likely to try to make a run at ALL of FCA on any basis OTHER than "friendly".

Also saw in the paper, 55% of FCA sales revenue, and 75% of the profits are from JEEP, grew from 500.000 units in 2008 to 2M units now. That's HIGHER than I thought when I was cypherin' breakup value on a napkin for a friend over lunch .. JEEP is likely MORE valuable than I guessed and thats BEFORE a bidding war for it.

To me that math sorta supports that, IN a transaction (eg. a strategic asset sale or an alliance deal) scenario, JEEP's value could equal FCA's. NO WAY you sell that brand (or RAM) WITHOUT having a simultaneous plan for the REST of FCA.

Now on the brands .. I'm having "personal" heartburn over the talk of the demise of Dodge and Chrysler brands. Its irrational .. but I've known these brands my WHOLE life .. and I'm a car guy thru and thru. :(

Dispassionately, however, the everyday passenger cars (200 dead, 300 in limbo) as a category are out of favor vs Utes/Trucks, so "Chrysler" is just "minivans" potentially. You don't keep a one-model "brand name" alive. I think its gone.

Dodge .. Dart is gone, and you're left with some seriously bad-a** sports cars, couple utes, and a minivan. What do you do with that .. IF you were thinking about buying FCA? What do you with Dodge do IF you were Sergio? 50/50 bet Dodge survives whatever comes for FCA -- IF buyer/alliance partner is a CAR company. If Alphabet or a financier ala a Cerberus? Dodge is gone.

there's smart people -- no matter we think of what they've done -- at FCA. They have good assets and good skills and I am rootin' for 'em.

Guess we'll all see what happens ... :)
 
Every company that has owned Jeep has either gone out of business or had serious financial trouble
Out of business:
Willis
Nash
Kaiser
AMC
FINACIAL issues related to ownership
Daimler-Benz Bought CHRYCO for 32 Billion & sold 15 years later for 4 Billion to a Capitial Investment firm
Cerebus Capital drove company into ground as upper managers cleaned up. Sold for penny's on the dollar to Fiat AFTER receiving US bail out funds
And now we have FIAT on the ropes & needing cash. Yea I'd get rid of Jeep too.
The funny thing is the Jeep brand was always selling well
This company is jinxed
I've often wondered when someone buys a nice shinny new Jeep do the rest of the cars they own start breaking down ? Leaving them just the Jeep to drive.....
 
...
This company is jinxed
.......

What are you suggesting?
P9300324-001.jpg
 
The Chinese are buying up all our industries/companies now. You people just haven't come to realize the immensity of it yet.
If we declared war on China, they could shut down the U.S. within 5 minutes without even alerting their military.

These are the ten largest American companies owned: Chicago Stock Exchange, AMC, Smithfield Foods (pork), Legendary Entertainment, GE Appliances, Waldorf Astoria, Strategic Hotels & Resorts, Riot Games, Ingram Micro, Terrex Corp. and Motorola Mobility. None critical when you get down to it at this time. All still run locally which means kind of hard to shut down from across the Pacific.

However, if we start to see tech companies bought by SOE Chinese companies/investors then could very well be a problem. One reason why Fairchild Semiconductor rebuffed a better Chinese buy offer and Western Digital turned down a $3.8 billion investment offer. The issue here is not shutting down the industry but the transfer of confidential technological knowledge to China.

Don't lose track that China is vulnerable also. Their companies are looking here because rate of returns are dropping over there in country. Labor cost per unit is almost equal to that of Japan and the U.S. now. The government is leveraged to the max in order to keep things growing and the massive populace quiet. China is the largest importer of oil in the world now. She has reserves for 90 days but after that trouble. Much comes from the Middle East by tanker through waters patrolled by the U.S. Navy. Other oil from drill sites off her coast, in the South China Sea, and easy targets. She exports three times as much to us as we do to her. If she doesn't keep selling then she would sink under her own debt load. She very vulnerable should hostilities break out and halt her economy for awhile.
 
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FCA has not been able to build up an appetizing product palette. As noted previously, the whole company looks like a haphazard agglomeration of brands.
For example VW has succeeded in building up a lineup of brands within the last 25 years or so, but they seem to have had some good managers, so the lineup looks good: Seat-Skoda-VW-Audi-Porsche-Bentley-Bugatti. Their bread-and-butter cars are built using the same parts bins, but the end products have their own identities, and there is not a single sour apple.
Not so with FCA. They have a lineup of wonderful old brands, but the management does not seem to have a clue as to what to do with them. Look at Lancia; a venerable old Italian sports luxury brand which hasn't had a desirable model since the early 1990's (Thema 8.32). Look at Chrysler; they should make a big, traditional American luxury car to replace the aging 300. But name it New Yorker. - Take the 2015 Elmiraj concept rejected by Cadillac, but make it a four door, put a big V8 in it, and sell it for a price. (I would like to thank the anonymous artist who made this photoshopped sideview):

2015-Cadillac-Elmiraj-side-view-2-610x305.jpg
 
I would love to see a modern New Yorker!

Probably trade my 2017 300C Platinum for one!
 
There are so many self driving features on my 300 that I still haven't figured everything out yet. It has lane change monitoring, also has another lane change feature that will keep resistance on the steering to keep you in your lane when going 37 mph or faster. You tap the turn signal and it will blink 3 times and the resistance on the steering wheel stops and allows you to make a lane change. Also has a front camera that monitors if you aren't slowing fast enough and will have warning horns and a voice that overrides the radio and says brake now and will actually apply the brakes if you get too close. It also has enhanced cruise control that will maintain a set distance to the car in front of you. It will apply the brakes if the car in front of you slows or will speed up to maintain the distance.
 
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The Chinese do not have the capability to mobilize their military on any massive type scale, like the U.S., So they are following thru with what Soviet Premier Khrushchev stated in 1956.
“We will take America without firing a shot ...We do not have to invade the U.S. - We will destroy you from within...”
What better way to overtake your adversary then with financial takeover.
 
The Chinese do not have the capability to mobilize their military on any massive type scale, like the U.S., So they are following thru with what Soviet Premier Khrushchev stated in 1956.
“We will take America without firing a shot ...We do not have to invade the U.S. - We will destroy you from within...”
What better way to overtake your adversary then with financial takeover.


The Muslim community is doing that at this very moment .
 
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