China's Great Wall Plans Bid for Jeep

The president of China’s Great Wall Motor Co. tells Automotive News her company intends to buy Fiat Chrysler Automobile NV’s iconic Jeep brand.

Wang Fengying (pictured) says Great Wall is “connecting” with FCA to begin discussions about a deal. A spokesman says Great Wall has expressed interest in Jeep indirectly by hasn’t met with FCA’s board to made a formal offer.

The appeal of Jeep, which is widely considered FCA’s most valuable asset, isn’t surprising. Morgan Stanley estimates that the marque as an independent brand would be worth about $33.5 billion. That compares with a market value of $32 billion for all of FCA, including Jeep.

In April CEO Sergio Marchionne told analysts FCA might spin off Jeep. He also predicted that the global SUV market could balloon to 35 million units per year and opined that Jeep could one day capture 20% of that total.

If FCA agrees to discuss a possible Jeep sale, Great Wall’s interest is likely to spark a bidding war among larger carmakers. AN notes that manufacturers such as General Motors Co., which have rejected a general merger with FCA, might be far more interested in a Jeep-only deal.

The newspaper speculates that Jeep also might be a good fit for Volkswagen or Mahindra & Mahindra. It notes that both companies could use the brand to bolster their presence in the American market.