How do we Chinese think about Great Wall’s interest in FCA?
During the past week, the news that a famous Chinese automaker made at least one offer to buy FCA has become a favorite of global media and especially sparked heated discussion in China.
Before the automaker’s identity was revealed, readers in China made a broad guess. Some people said it should be Great Wall because it has similar product portfolio to Jeep.
Besides, even some people suggested Beijing Automobile Beijing Automotive Group Co. to make an offer, which once established a joint venture with Daimler-Chrysler to produce Jeep.
Yesterday, Great wall confirmed its interest in Jeep. In order to be the largest SUV maker in the world, Great Wall thinks the merger and acquisition will enable it to achieve its goal sooner and better.
Some compatriots are proud of Great Wall’s ambition and fully support the automaker. Frankly speaking, it is sort of nationalism. After the success of many local enterprises, such as Alibaba and Geely, the public’s expectation towards our own brands ran high.
Then Great Wall can’t afford to buy Jeep. In 2016, Great Wall’s sales revenue was about $14.76 billion, much less than FCA’s $131 billion. According to Morgan Stanley analyst Adam Jonas, Jeep’s market value reaches up to $33.5 billion. Without outside help, Jeep is beyond Great Wall’s affordability.
And also, there are some customers who don’t like Jeep that much. In their opinion, Jeep’s quality is not so good and it is not worthy to buy such a brand.
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