General Motors recently announced their withdrawal of GM Opel offerings. The announcement paved the way for conclusions made by car critics that this may open doors for the massive automaker to purchase Fiat Chrysler. Is the brand interested in the European giant?
Fiat Chrysler (FCA) has had a positive influence in the European automobile market for years. In fact, it remains an active dealer for profit-rich brands such as the Maserati models, one of the fastest cars to date. After the GM Opel brand has been discontinued, GM was said to be interested in acquiring the European automaker, reported Auto News.
If GM would purchase FCA, it would get access to the best-selling Jeep which has had an impressive global presence under in the automobile category. In fact, it has been largely distributed in the United States and is currently being produced in Europe, Asia, South America, and possibly expand if the GM acquisition pushes through.
The FCA's performance in the market had been apparently dim as they recently cut back their production of compact and midsized sedans due to low-performance in sales. However, GM was deemed to possibly be interested with the Jeep crossovers, SUVs, and Ram pickups.
In other news, The Guardian reported that FCA has proved to be a top performer in the car industry which suggests that they may be a healthy investment for GM. At present, GM is the world's third-largest carmaker worldwide. In the U.S., it is the top-selling automaker but experienced major setbacks due to the carbon emissions issue that cost them $15 billion worth of settlements.
Per Chuck Stevens, GM's chief financial officer, the company is prepared to take whatever actions necessary to put the brand on top of the European automobile market. Will the GM Opel omission enable the brand to acquire a good-performing automaker in the Europe? Will this signal their increase of sales in the coming years?