China’s Great Wall Motor Co announced their interest in bidding on Fiat Chrysler. CEO Sergio Marchionne of Fiat is looking for a partner or buyer to help manage growing costs, develop technology for electric and self driving cars, as well as comply with emissions regulations. If Great Wall were to acquire Fiat, the market value would be about $20 billion and would be China’s largest overseas automotive industry deal and largest ever overseas purchase.
Great Wall had asked to meet with Fiat hoping to make an offer for all or part of the group but did not make a formal offer just yet. The Chinese automaker hopes to become the world’s largest SUV maker after acquiring the company. Fiat’s shares grew 3.9% to 11.12 euros in Milan. Great Wall’s shares reach a 3% in Shanghai.
Marchionne plans to reveal a 5-year strategy next year that could include asset sales. The company’s major profit derives from Jeep SUVs and Ram trucks for North American operations. Next year, Jeep sales is targeted to reach up to 2 million vehicles which would be up from 1.4 million last year.