Fiat Chrysler an enticing takeover target for China

Detroit : Italian-American car maker Fiat Chrysler Automobiles would be an alluring takeover target for a Chinese company, instantly putting it at the top rung of the US auto industry, analysts say.

In July, a well-known but unnamed Chinese automaker made at least one offer to buy Fiat Chrysler at a price supposedly above its current market value, the industry news site Automotive News reported earlier this week.

Fiat Chrysler declined to answer questions from AFP but its share price jumped nearly 10 percent on the news.

According to Automotive News, the Italian-American auto giant rejected the Chinese company's advances, because the offer was too low.

With sales of its models ebbing in the United States, a Chinese acquisition could offer a lifeline to Fiat Chrysler, in particular for its Chrysler, Dodge and Fiat brands.

A sale also could provide the means for the company to boost its research and development.

"It won't be a merger. It will be an outright sale," said Joseph Phillippi, president of Auto Trends Consulting.

He notes that Fiat Chrysler produces the Jeep and Ram brands which not only are popular in the United States but also in China and elsewhere.