US "car news" broke the Chinese car enterprises want to buy Fiat Chrysler Motor Company (FCA). The news in the global automotive industry aroused a lot of waves, the relevant car prices to deny the industry is caused by the curiosity. After a full week, finally, the Great Wall made it clear that it has the meaning of the acquisition.
In an e-mail to the US "Auto News", Wang Fengying, president of Great Wall Motor Co., Ltd., made it clear that the Great Wall had plans to acquire Jeep and had begun to contact FCA, hoping to open the acquisition negotiations. Great Wall spokesman Xu Hui then added that the Great Wall has indirectly expressed interest in Jeep, but has not yet issued a formal offer, nor with the FCA board meeting. However, FCA issued a statement regarding the news that it did not contact the Great Wall Motor for the sale of Jeep brand or other related matters, the company is currently busy with the implementation of five years (2014-2018) business plan.
Want to buy Jeep, is not Coilover Shocks surprised
US "Auto News" said the plan for the acquisition of Jeep Great Wall Auto is not surprising. The media said, Jeep FCA may be the only one to attract the acquisition of the brand, and its charm has long been confirmed. As early as 1987, Chrysler took a fancy to the Jeep brand and acquired it from the American car company (AMC); in the past decade, GM had at least three attempts to establish a partnership with Jeep.
The media cited the industrys analysis, said Jeep is undoubtedly the most valuable brand of FCA. In theory, the price of the Jeep brand may be higher than the price of the entire FCA. Morgan Stanley analyst Adam Jonas on the brands market value is to quantify the value of the brand and the status of FCA. Jonas said the Jeep brand itself, its share price is about 17.2 US dollars per share, including Jeep, including FCA stock price of about 16.4 US dollars per share. According to the above prices, Jeep brand price of about 33.5 billion US dollars (about 225.5 billion yuan), while the FCA price slightly lower, to 32 billion US dollars (about 21.34 billion yuan).
However, it is also Jeep brand so high market value for the Great Wall car has brought no small obstacles. In 2016, the Great Wall Motors operating income equivalent to the US dollar was only 14.76 billion, while the FCA is as high as $ 131 billion. For the financial problems, the Great Wall is confident to raise funds to achieve the acquisition. "The Great Wall has a good track record and we have been listed in Hong Kong and Shanghai, not only to use the accumulated profits, but also to take advantage of our channels in the basic market to facilitate the acquisition."
Great Wall to be the worlds largest SUV manufacturer
In 2016, the Great Wall Motor total sales of 1,074,471, of which SUV was 938,018. However, according to the original plan of the Great Wall Motor, do not consider cooperation with Hebei Yujie, by 2020, the Great Wall plans to break the annual sales of 2 million, becoming the worlds largest professional SUV brand. "Our strategic goal is to become the coilovers worlds largest SUV manufacturer," he said in an interview.
However, if calculated in accordance with this goal, the Great Wall car sales compound annual growth rate of at least 20%. If you can with the current worlds largest SUV brand cooperation, the Great Wall of the macro will be able to easily achieve. Xu Hui also pointed out that "and just rely on their own brand compared to the acquisition of Jeep this global SUV brand, we will be faster and better to achieve the goal.
According to the US "Auto News" data, thanks to the growing product line and in Latin America, Asia and Europe have production base, Jeep brand in 2016 global sales of 1.41 million vehicles. Among them, about one-third of the sales from Brazil, India and China and other markets outside of North America, hoping to 2018 to reach 2 million global sales. The two sides set the companys goal is 2 million, once the Great Wall successfully acquired Jeep, annual sales can not only achieve the established goals, maybe also doubled times
However, optimistic about the SUV market is not only Wei Jianjun, there are FCA CEO Marjorie. Last month, in a conference call with analysts, Marjorie said that given the current market demand, the global SUV market is likely to reach annual sales of 33 million to 35 million units. "If there is a brand that can occupy one-fifth of the global market share, it must be Jeep." According to Marcheons statement, once it has achieved that goal, its global annual sales of about In about 7 million. So, by contrast, the Great Wall Motors 2 million is a small target. So, Jeep will be sold to the Great Wall, can only wait and see.
Acquisition or provision of international fulcrum
In the previous "Auto News" given the list of potential buyers, the Great Wall of the internationalization of the car seems to be weaker. Dongfeng Motor has successfully stake PSA, Geelys Volvo and Baoteng has more than overseas brands, and Guangzhou Automobile is Jeep brand domestic cooperation car prices, so the internationalization of the Great Wall seems the most urgent problem.
At present, Great Wall Motor has a research and development center in Los Angeles. In addition, the Great Wall expressed concern about establishing a factory in Mexico because of concerns that US President Trump may develop more stringent trade Air Suspension policies. Great Wall hopes in the United States will eventually be able to sell Harvard SUV, and pointed out that the production of vehicles in the United States can avoid trade risks. Xuhui said the Great Wall hopes to use this year in Detroit set up R & D center, a lot of understanding of the US market, and Jeep in North America mature distribution network and market experience, will also be able to provide a fulcrum for the internationalization of the Great Wall.
In foreign media to provide four Chinese car prices, Dongfeng, Geely and Guangzhou Automobile have come out after the news have denied the intention to acquire FCA. As the first Chinese car to love FCA, although the FCA to contact the "cold" treatment, but the Great Wall is able to get Jun heart, there are still many variables. With regard to the latest developments in the incident and the views of all parties, Geshi will continue to pay attention.