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How Fiat Chrysler Stock Is Faring amid Acquisition Rumors

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Fiat Chrysler

In 2017, Italian-American automaker Fiat Chrysler Automobiles (FCAU) yielded a solid 96.4% positive return. However, its stock turned negative in 2018 and fell 18.9%. 

In the quarters that ended in June 2018, September 2018, and December 2018, FCAU posted falls of 7.9%, 7.3%, and 17.4%, respectively, after rising 15.0% in the quarter that ended in March 2018. Now let’s take a look at how the stock has traded in the first quarter of 2019.

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Acquisition rumors

According to a recent Reuters report, “France’s Renault SA intends to restart merger talks with Japan’s Nissan Motor Co Ltd within 12 months, after which it will set sight on a bid to buy Fiat Chrysler.” However, so far, Renault hasn’t officially commented on rumors about its plans to acquire Fiat Chrysler after its merger with Nissan.

Underperforming US peers in the first quarter

As of March 27, Fiat Chrysler has risen 4.5% in the first quarter. In comparison, mainstream US auto companies (XLY) General Motors (GM) and Ford Motor Company (F) have risen 9.4% and 12.7%, respectively, in the quarter so far.

Japanese auto giants Toyota Motor (TM) and Honda Motor Company (HMC) have seen 4.3% and 2.7% quarter-to-date gains, respectively, while Italian luxury carmaker Ferrari (RACE) has surged 33.5% in the period.

Fiat Chrysler owned Ferrari until January 2016, when it completed the spin-off process for Ferrari.

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