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Economy

Fiat Chrysler takeover mystery: A trick, a treat or a strategy?(2)

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2017-08-21 10:07China Daily Editor: Wang Zihao ECNS App Download

Alfred Tian, an independent car analyst in Beijing, said it would be unlikely for any of the rumored buyers to devour FCA as a whole, which is much larger than them in sales or revenue.

Statistics show that FCA sold 2.36 million cars in the first half of the year. In contrast, Dongfeng, the largest of rumored buyers, sold 1.47 million units in the period.

Geely's sales goal for this whole year is 1.1 million units.

Some others suggest that the issue should not be taken seriously, saying that the takeover hype might be nothing but FCA's trick to boost its market value to get a better deal some day.

According to Reuters, in the two days since the rumors emerged, FCA's valuation had jumped more than 10 percent to a 19-year high.

On Aug 15, Morgan Stanley raised the value of FCA's Jeep SUV division to 14.7 euros ($17.28) per share, about 38 percent of the company's 10.62-euro closing price in Milan, Italy, one day earlier.

  

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