What If Great Wall Bought Jeep?
In case you haven't heard the rumors, the recent buzz in the auto industry is that China's Great Wall Motors is looking to purchase the Jeep brand from parent company Fiat Chrysler Automobiles. Both sides have denied the rumors, but if it does happen, it could mean good things for Jeep and more pickup truck possibilities for consumers.
For context, let's look at Geely's — another Chinese automaker — 2010 purchase of the Volvo brand from Ford. Geely injected a boatload of cash into Volvo's engineering and design teams, which resulted in the highly awarded XC90 SUV and all-new S90 sedan. Both have wowed auto writers with their impressive power and technology, as well as its over-achieving interior. Could the same thing happen if Great Wall bought Jeep?
Let's look at a few things. First, FCA would have to be willing to split off one of its two cash cows right now — the other being Ram — so the price would have to be right. According to Automotive News (subscription required), there seems to be plenty of cash on hand and several Chinese banks willing to help Great Wall Motors. Great Wall has struggled to get into the North American market, and this acquisition could help. If the deal was made, it would allow Great Wall to expand and increase its SUV knowledge and market reach tenfold. So far, Great Wall's only foray into the SUV class was the Haval H8, which had transmission issues that required help from outside sources.
Great Wall makes the stout Wingle 5 and larger Wingle 6 pickups. What could a Great Wall acquisition mean for the coming Jeep pickup? No matter who owns it, this first-generation return-of-the-Jeep pickup — expected to be a 2019 model — is likely to be a slam dunk for the U.S. market, but it could struggle globally if it's not sized and priced properly. Anything meant for China must be able to do work duty, just like other global mid-size pickups — some of which can carry more than 2,000 pounds of cargo. That's something none of our U.S. mid-size pickups can do. A Jeep pickup could play well in South America and other tropical regions where a credible set of live axles and an advanced four-wheel-drive system would be a huge asset when the rains come, but it would have to do urban duty as well, maybe with a flat-bed cargo deck and dump bed.
Whatever happens between FCA and Great Wall, it's important for the owner to keep pace with new products in the highly profitable SUV and pickup classes. That could mean more mid-size and full-size pickups options from FCA's Jeep and/or Ram brands. And if Jeep and Ram really take off, what will happen to FCA's other two brands, Chrysler or Dodge? Tell us what you think in the comments section below.
Manufacturer images
2005 Jeep Gladiator Concept pickup truck, based off the Jeep Wrangler
Comments
Jeep is no longer a company.
It is just a brand name, like Fender guitars or Winchester rifles or Colt pistols. These names are as American as apple pie, but Winchesters are made in Japan and have been for decades, Colt has been passed around like a floozy at a high school dance, and Jeep is today a badge instead of a truck.
FCA today, maybe some Chinese outfit next year.
Kinda crazy that this site promotes China buying Jeep, yet seems to have a hatred for foreign Brand vehicles (Toyota Tundra/Taco/Nissan Titan/Frontier)
This is sad news for me being a US auto maker patriot & will certainly change my view of jeep. Jeeps are timeless & owned many in my life; many were lemons but held on to one as a weekend basher; a '93 Renegade, aside from a 4 inch Rubicon lift/35 NITTO's & a 1200 watt sound system - the 4.L is untouched & with almost 200 00 miles...not bad at all.
I wonder what all the RAM fangirls will say :-) but the worst case scenario could be like Land Rover's story; owned by an Indian auto empire & so far maintaining their quality & reliability reputation (not so good) but it has improved somewhat.
FCA
Fine Chinese Autos
Jeep today,
Cheep tomorrow.
#1) Here's hoping it's made HERE and not THERE. A Jeep
product wearing a " Made in China " badge will not go down well.
Far too many iconic brand names of the past have been sold
to well intentioned companies that eventually realized that the bottom line IS the bottom line and quality goes down the
toilet.
#2) Same Same the Ram. Supposedly, FCA is moving Ram
production back up here. Adios Mexico. Don't think for a
minute that once Mexican workers realize their bread and
butter is gonzo for good, those last Rams won't have more
issues then a Bernie Sanders supporter. What do they have
to loose, their jobs? Riiiggghhhttt.
#3) On the bright side, look at Milwaukee. They sold out to
a Chinese electronics conglomerate and their tools outsell
everyone else's. Will a huge influx of cash offset the black
eye Jeep will get? Hard to say....
#4) How 'bout Dem Cowboys !!!!!?
Why not spin Jeep off as it's own company? Can't Penske or Warren Buffet put together a group to buy Jeep? Maybe even merge it with AM General?
Can we not bring this American Icon home?
What If Great Wall Bought Jeep? It still be better then s#$tty Ford product, that's what!
Funny, Tundra is owned in Japan and built in Texas and RAM fans call it Japanese, even though RAM is owned in Italy. Let's see what they say when RAM is owned in China, because the last article I saw on this said Greatwall is interested in Jeep and RAM.
https://www.nytimes.com/2017/08/22/business/fiat-chrysler-china.html
If Great Wall purchases Jeep or even worse Ram, I will probably take a shot at my first Ford pickup! Not that I have anything against Ford, just never had one
FCA can't spin off the cream as no one will buy the cr@p.
Unless things change in China, I wouldn't be interested in purchasing a Great Wall vehicle.
China has never been an innovator. They might be able to make double as many Jeeps and even bring down the cost, but innovators they are not.
@Mark Williams
A major reason why our midsize trucks cannot carry over 2,000 lbs of cargo has more to do with the US DOT Class 1 that these trucks are in and its max GVWR of 6,000 lbs. Even if these trucks can handle more payload, they would have to weigh less than 4,000 lbs in order to be able to carry over 2,000 lbs due to this Class 1 GVWR restriction. The vehicle class that these trucks are in in other countries have higher max GVWR weight restrictions(or none at all) which allows for greater payload numbers.
@Mark Williams
"is likely to be a slam dunk for the U.S. market, but it could struggle globally if it's not sized and priced properly."
Extra cash will help Jeep and RAM in the NA market. Jeep sells more than 80% of it production in NA, it's Global aspirations are going to be extremely difficult. Needs to be a vast increase in quality and reliability if to be taken seriously globally.
China has purchased a few smaller general aviation company's during our downturn. Cirrus aircraft comes to mind. China knows that one way to get into the worldwide game of manufacturing is to buy a not so healthy manufacturing company, and go from there. They aren't stupid. Buying a company helps them get all the IP immediately. And to keep the flow of cash coming, that means don't necessarily mess with the manufacturing plants. If they are in the US, then let them stay so, until they are absolutely positive that they can release a newer product, with perhaps, their own how grown manufacturing. And many people don't know where a product is built when it has the name of a well know American company. From what I've picked up on this site, none of the big 3 are building anything 100% home grown anymore anyway.
This site is such a joke. This is nothing but rumor, already been debunked WELL OVER A WEEK AGO!
You wish.
Meanwhile, waiting for the next "Ford is great" article. The bias here is bad.
The Japanese sake company owns one of the largest bourbon makers in Kentucky with hardly any change in its operations. I do mourn the loss of US owned business but FCA is a foreign owned company--sure it has US stockholders but it is basically a foreign corporation. But it is what it is and in a highly competitive global market this is what happens. This would not be good for FCA because Jeep is the most profitable of all their brands with both Jeep and Ram providing the profit to keep the rest of FCA in business. Sergio would know this. Sergio and FCA would be more interested in merging the entire company and get a nice profit but that is not likely to happen. The Chinese could bide their time and wait for FCA to go bankrupt and pick the whole
company up for a song closing or selling off Chrysler, Dodge,
Fiat, Alfa Romeo. There are at least 2 other Chinese companies that have been trying to buy FCA. Just my opinions based on what I have read.
Meanwhile, waiting for the next "Ford is great" article. The bias here is bad.
Posted by: Chrysler Guy | Aug 28, 2017 4:43:05 PM
Being a Chrysler Guy, you should always carry your Box of Tissues because all you people do is cry,
so....
Just
Empty
Every
Pocket
.............already
We have low payload trucks is because our fat asses want comfort over utility. Other countries actually use their trucks as trucks while we just use ours for bragging to the neighbors. I have only seen my neighbors use their trucks to town or haul probably twice a year. Their boats sits in their drive way so long it's growing plants out of it.
"Their boats sits in their drive way so long it's growing plants out of it."
Love that comment, made my day.
@Jeff S
Sergio has broken Fiat up into FCA( Jeep, RAM and Chrysler) then (Alfa Romeo,Ferrari and Maserati) are in or will be another seperate company. Established is (IVECO, CASE and John Holland) the Commercial/ Agricultural side of Fiat.
He is trying to sell Jeep and RAM to get money for investment going forward
Now VW has offered an " Alliance" with FCA so that VW can sell it's Vans in NA.
A lot going on with FCA.It is a target for acquisition
I THINK JEEP IS ALREADY CRAP JUST LIKE GARBAGE MOTORS HAHAHAHAHAHAHAHAHAHAHAHA. IT'S FALLOWING GARBAGE MOTORS PATH. GARBAGE MOTORS IS PURE JUNK. HEY ANOTHER THING TO ALL THE GARBAGE MOTORS FAN GIRLYS STOP WASTING YOUR TIME POSTING UNDER MY USERNAME WE ALL KNOW FORD IS WAY BETTER THAN GARBAGE MOTORS. FORD FOR LIFE PUTOS.
I THINK.........
Posted by: Chingon | Aug 28, 2017 6:11:49 PM
HAHAHAHAHAHAHAHAHAHAHAHAHA!!!
Yeah I think!!! SO WHAT'S UP HOMES FIGHT ME.
Oh wait a minute I DON'T FIGHT GARBAGE MOTORS FAN GIRLYS. HAHAHAHAHAHAHAHAH.
HEY JENNY DLTHO I MEAN GMRGARBAGE FIGHT ME.
JUST COME DOWN TO CEN-CAL AND WE CAN HANDLE THING LIKE A MAN TO GIRLY.
Meet me somewhere! I'll smoke you. MEET ME SOMEWHERE!
Chinese trucks can carry so much weight bc no one cares if youre overloaded..LOL
http://en.rocketnews24.com/2015/03/16/chinese-trucker-hauling-huge-boat-on-highway-attracts-police-32-fine-and-a-lot-of-laughs/
http://en.rocketnews24.com/2013/02/23/hilariously-overloaded-vehicles-in-china-【photo-gallery】/
HAHAHAHA!!!...GMSUCKS is so scared he flip-flops between his multi-girlie personalities johnny dum dum, Sierra or whatever...
Id never buy anything made in China,chinese atitude is summed up in one proverb that says something like,,:
cheating is ok,if you can get away with it..
IOW, they dont give a shyt about quality
https://youtu.be/ENLIGHXbGfE
https://youtu.be/-l5Dy12z5JU
HAHAHAHA!!!...GMSUCKS is so scared ......
Posted by: Lionel | Aug 28, 2017 7:04:10 PM
I THINK.........
Posted by: Chingon | Aug 28, 2017 6:11:49 PM
HAHAHAHAHAHAHAHAHAHAHAHAHA!!!
Posted by: GMSRGREAT | Aug 28, 2017 6:15:37 PM
HAHAHA......it's even funnier posting it a second time. HAHAHA!
I DON'T THINK, THAT'S WHY I DRIVE GARBAGE,
AKA (FORD CRAP ) HAHAHAHAHAHAHAHAHAHAHAHAHAH!!!!!!!!!!!!
@Robert Ryan--I understand that but if FCA sells off Jeep and possible Ram then a major source of revenue is lost. FCA has burned through a lot of cast just with Alfa Romeo especially the Guilietta. Sure selling Jeep would get FCA a immediate resources but that would be not enough to survive in the long term. Also Sergio would rather merger. If Jeep is sold then it is just a matter of time till FCA goes either bankrupt or out of business which might happen anyway. Maybe Fiats sell in Europe but in the US they are a dead brand. Is Fiat doing that well in Australia? Maybe the Indians would be interested in Fiat an Alfa Romeo but I can't imagine anyone else would be. Neither brand is known for their quality. Fiat has not overcome its Fix It Again Tony reputation. I doubt Sergio could get a bailout from the US Government if FCA had a bankruptcy. The Best thing is to sell all of FCA .
@Jeff S, your xenophobia is showing. Please take your hateful ideas elsewhere!
@Jeff S
Correct Fiat still has a negative connotation. FCA is not doing well at all. Now on the other hand Ferrari, Maserati and Alfa Romeo are not included in the FCA group ( Jeep and Fiat)
IVECO Trucks, Case Tractors and John Holland Tractors are a seperate Company, like Ferrari , Maserati and Alfa Romeo
@Jeff S
Fiat as in FCA are just lagging behind Ford in Europe.,so they are not doing badly and are on track to catch Ford( Brexit may have a negative impact on Ford sales as the UK is a major market for Ford)
GM is basically dead in Europe, it sold Opel and Vauxhall to PSA
Fiatler is always in or on the verge of being in trouble. Their COMPLETE inability to make quality/relevant/or even passable small and midsized cars even intermittently. The great US Government Funded giveaway of Chrysler to Fiat will ultimately fail. Chryslers death has been a long slow slog towards doom with occasional delays of what is sadly inevitable. The last 35 years for Chrysler has been largely plagued by poor products, poor decisions and short term thinking with the too few good products and good decisions not often enough to change the ultimate outcome. One merger and one acquisition have failed and the current giveaway is failing. With each change in ownership/partnership Chrysler continues to devalue (to the point where NOBODY would buy it and only Fiat agreed to take it over if fully funded by the US Gov). Its very sad. Cool looking poorly made cars like the challenger and charger cannot make up for the failures like the dart, 200, caliber, nitro, (prior) pacifica, even if you cram 600HP into them. Ram and Jeep while profitable cannot overcome this either. GM and Fiat didn't go broke because of their trucks... they went broke because of their cars and it will happen again if they don't fix their cars. They went broke in spite of making trucks. Jeep is fascinating.. it cannot stand alone but, the brand is tremendoudly valued and yet every company that buys/acquires it ultimately goes under or regrets it. Ram and Jeep are the only things Fiat has to sell that anyone would want (kinda like sears selling off Craftsman and Kenmore). The crown is old and tarnished and beat up and these are the last/only 2 jewels left for Fiat to pawn out this mess.
@Robert Ryan--True about the equipment and commercial trucks, but Fiat itself has to change. Even in Europe and the rest of the World its competitors have gotten bigger (i.e. Citroen and Renault). Fiat and Alfa Romeo are going to have to improve their quality. Chrysler itself is on life support and taking Jeep away would probably quicken its demise. Too bad because Chrysler in the past has been an innovator. Sad to see a company such as Chrysler go along with the jobs. The problem with FCA is no one wants to merge with them and the real value in them is Jeep and possibly Ram except maybe the commercial truck and equipment division which could be sold separately to another manufacturer. Chrysler and Dodge could not survive alone. Ram would have some value to a foreign manufacturer that wanted to establish itself in the NA truck market. Jeep is an attractive to many manufacturers. I would think GM and Ford would want Jeep but then neither would want the rest of FCA. Sergio up until now has tried to merge all of FCA with another manufacturer.
@Clint--True about Jeep. Willies/Overland, Kaiser, AMC, and now Chrysler. Jeep has value but its past has been a kiss of death for those who acquired it. I do not see Jeep going away regardless of what happens to FCA.
@Clint
The biggest problem facing Chrysler (and other marginal manufacturers) is the over-capacity that has plagued the auto industry during since the 1980s.
Chysler, Mitsubishi, Mazda and Suzuki are actually among the better brands in that batch of troubled companies. Saab, most of the British brands, Opel, Peugeot (and others) rank among the failed state-run entities that endured as long as they did due to government support of various kinds. There are really too many to mention when you start counting Eastern Europe, Russia and India.
Too much capacity, too many brands, a lot of forgettable models.
Given the bail outs, Chrysler can reasonably be added to the list.
Also the Challenger, Charger, and 300 while popular are not enough to sustain FCA and all are on aging platforms that would take away valuable resources to redesign with not much additional market. FCA is better to get as much profit out of the old platforms until they don't sell. Not as much demand for full size sedans and the Challenger alone would not add enough to their bottom line.
It's kind of sad that a American company (Ford) could/would not update the Volvo. Then sell it to a Chinese company who instantly made it so much better. Typical American thinking. "Build it and they will buy it" NOT! It should be "what do they want and we will build it for them"
If FCA Sold Jeep and Ram. Chrysler and Dodge would disapear, only thing they have now is a mini-van and the Charger/Challenger
It's kind of sad that a American company (Ford) could/would not update the Volvo. Then sell it to a Chinese company. Posted by: Dave | Aug 29, 2017
@Dave
I agree about the unfulfilled Volvo/Ford deal. There is another angle though. Ford was able to update its lame sedans and small SUVs during that time with the excellent engineering they inherited from Volvo. Ford Taurus and Freestyle models gained considerable insight and sophistication from the deal.
Volvo? not so much
The Chinese could infuse more cash into Jeep and develop new products. With the exception of the Cherokee FCA has not put resources back into Jeep. Resources spent on Alfa Romeo would have been better spent on Jeep and Ram.
Not as much demand for full size sedans and the Challenger alone would not add enough to their bottom line. Posted by: Jeff S | Aug 29, 2017 8:11:58 AM
@Jeff S
I just today read an article stating the opposite. In fact, FCA's big sedans are THE choice of police/fire/municipal purchasers today because Ford really doesn't have one (Crown Vic is dead) and Chevy's Impala is too expensive since the old Impala was replaced. Police, Fire and Muni markets are huge.
"What if great wall bought Jeep?"
Then it would be another brick in the wall
hahahahahahahahaahahahahahahahah
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