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Old 09-14-2017, 04:43 PM   #4
XDCX
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Join Date: Nov 2007
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Great comments from both AR2 and Steve Biegler.

I concede that I really haven't kept up with FCA's efforts to find a buyer but the impression I had from when I was last up to speed is that Marchionne has "shopped" FCA across the planet and hasn't found anyone who is willing to buy the whole package.

My impression has always been that there are a number of companies that would like to have Jeep and Ram and a different set of companies that would be interested in owning Maserati and Ferrari. That said, I think that any company that was smart enough to be in a position to buy FCA would also be smart enough to know that time is Marchionne's enemy.

Marchionne first "shopped" FCA when the market and the economy was still hot and the Chrysler/Jeep/Ram product line was fresh and competitive. Over the past three years the market has softened and much of the Chrysler/Jeep/Ram product line is starting to look dated and less competitive.

To Steve Biegler's point, I agree that Honda acquiring the Jeep and Ram brands would make perfect sense. The only downside I see from Honda's perspective is what do you do about the Jeep/Ram Dealers and the UAW?

If I were the guy at Honda who's waiting to pull the trigger I'd probably figure it's smartest to let time work against Marchionne. While there's currently no indication that FCA is anywhere near a point where bankruptcy would be an issue we all know how fast an OEM can hemorrhage cash when the economy comes to a hard stop.

Arguing the flip side, FCA's stock price appears to be near or at an all-time high. Wall Street seems to be convinced that Marchionne is going to be able to find multiple suitors who will create a bidding war.

As always, time will tell....
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