FoMoCo (NYSE:F) says, “No interest in a Tie-up With Fiat-Chrysler
Ford Motor Co (NYSE:F) is not interested in a tie-up with Fiat Chrysler Automobiles NV (NYSE:FCAU), CEO Mark Fields said Saturday, when asked about FCA head Sergio Marchionne’s remark that Ford could be a potential merger candidate.
“I can’t speak to what Sergio or others wake up and want to say,” Mr. Fields told reporters ahead of next week’s Beijing Motor Show.
After being rebuffed by General Motors (NYSE:GM) last year, Mr. Marchionne said last week that Ford, Toyota Motor Corp (NYSE:TM) and Volkswagen AG (OTCMKT:VLKAY) are the only remaining merger candidates for the Italian-America auto giant..
Mr. Fields reiterated a written statement Ford issued last week, saying: “I can just say we have no interest other than executing our plan, delivering product excellence and driving innovation in every part of our business. That is our sole focus.”
Speaking in Beijing, Mr. Fields said the company sees 23.5 to 25.5-M vehicle sales for the overall Chinese market this year, representing flat to slight growth over Y 2015.
Mr. Fields declined to give a target for Ford China sales for this year.
Ford’s China sales gained 14% in Q-1 of this year to 314,454 units, outpacing 6% growth for the overall market.
The giant US automaker has been locked in a dead heat for 5th-largest in passenger car sales with Toyota and Nissan in China, according to China Association of Automobile Manufacturers statistics. It overtook the Japanese automakers in sales for Q-1 of this year after finishing behind for Y 2015.
Ford makes cars in China through joint ventures with Chongqing Changan Automobile (SZ:000625) and Jiangling Motors Corp (SZ:000550).
“We have a lot of confidence in the medium- and long-term over the continued growth in the China market,” Mr. Fields said.
Note: Fiat-Chrysler need an auto finance facility for its automobiles, this is a Key reason for the merger that Mr. Marchionne seeks
|HeffX-LTN Analysis for F:||Overall||Short||Intermediate||Long|
|Neutral (0.19)||Neutral (0.19)||Neutral (0.21)||Neutral (0.18)|
|HeffX-LTN Analysis for FCAU:||Overall||Short||Intermediate||Long|
|Neutral (0.10)||Neutral (0.21)||Bullish (0.33)||Bearish (-0.25)|