China's largest manufacturer of SUVs and pickups, Great Wall Motor Co Ltd, is interested in buying Fiat Chrysler Automobiles (FCA), a Chinese company employee said on Monday, confirming reports that the firm intends to purchase some or all of the shares of the owner of the Jeep and Ram brands.
Rumors about the interest of the Chinese company to the FCA arose after last week's US edition of Automotive News reported that a certain "famous Chinese automaker" in August made an offer to buy the concern, provoking a jump in Milan's Fiat shares.
"As for this case, at the moment we have an intention to buy. We are interested in (FCA)," Great Wall Motor's public relations officer told Reuters by telephone, who asked to remain anonymous. He did not disclose other details.
FCA head Sergio Marchionne is looking for a partner or buyer for the world's seventh automaker, so that the company can cope with rising costs, comply with emission requirements, and develop technologies for the production of electric vehicles and robotic driving.
Earlier on Monday, two sources familiar with the situation said that Great Wall Motor had asked to meet with the FCA to make an offer to buy all or part of the shares of the Italian-American concern. Automotive News reported, with reference to the email of the Great Wall Motor President Wang Fengying, that the Chinese company contacted the FCA, expressing interest in the Jeep brand.
The publication also cited the words of the representative of Great Wall Motor, who confirmed this information, but said that the Chinese automaker did not make an official offer and did not meet with members of the FCA board of directors.
"Our strategic goal is to become the largest producer of SUVs in the world," the representative of the Chinese company quotes Automotive News.
"The acquisition of Jeep, a global brand of SUVs, will enable us to achieve our goal faster and better."
FCA shares rose 3.5%. Great Wall Motor's papers grew by 3%.
FCA was not immediately available for comment. Earlier, the company refused to comment on the Automotive News message about the interest of the Chinese company to the Jeep brand.