Marchionne: FCA Open to Buyers—After This Year

Fiat Chrysler Automobiles NV, which turned down an offer from China’s Zhejiang Geely Holding Group last year, is willing to talk with potential suitors after completing its five-year growth plan at the end of 2018, says CEO Sergio Marchionne.

Analysts need to wait until the strategy is fully implemented and the results can be assessed to determine FCA’s true value, Marchionne tells reporters at this week’s Geneva auto show. Talking with investors before then would be “nonsense,” he asserts.

FCA kicked off the current five-year plan in 2014, following the merger of Fiat SpA and Chrysler Group LLC. In addition to implementing operating synergies and cost reductions, the strategy included relaunching Fiat and Alfa Romeo in North America and expanding Chrysler and Jeep in international markets.

Marchionne, who is due to retire at the end of the year, confirms FCA met with Geely last year about a potential takeover by the Chinese company. Last spring Geely Chairman Li Shufu reportedly proposed a $20 billion takeover plan, later raised to $22 billion.

The rejected offers involved buying out FCA’s top shareholder Exor NV, which is controlled by the Agnelli family, and a public stock offering for the remaining shares, according to Bloomberg News. Exor owns 29% of FCA’s shares and controls 42% of the voting rights.

Marchionne says he would be open to future deals from Chinese investors and other potential buyers. In 2015 the mercurial chairman had pushed for a merger with General Motors Co. but backed off those plans after being repeatedly rebuffed by the larger carmaker.

Geely, which has been on a buying spree over the last year, isn’t expected to take another run at FCA. Last month the company acquired a 9.7% stake in Daimler AG for $9 billion to become the German carmaker’s largest shareholder.

Geely also finalized a deal to buy truckmaker AB Volvo in December. In May it purchased a 49.9% stake in Malaysian carmaker Proton Holdings Bhd. and a 51% stake in its Group Lotus unit.

In addition to Geely, reports say three other Chinese companies—Dongfeng Motor Group, Guangzhou Automobile Group and Great Wall—were interested in buying FCA last year. At the time, the companies denied they were actively pursuing such a deal.