BYD and Stellantis Dismiss Chrysler Acquisition Rumors

Rumors have been circulating in the automotive world that Chinese automaker BYD is eyeing a potential acquisition of Chrysler, one of the iconic brands under Stellantis. Both companies have publicly denied these claims, with BYD going as far as labeling the reports as “fake news” on their official Weibo account. Stellantis also issued a categorical denial, stating that no discussions are taking place with BYD.

However, sources within the industry have indicated that BYD officials recently visited several key Stellantis facilities in North America. These visits reportedly included the Chrysler Technical Center in Auburn Hills, Michigan, the Brampton and Windsor assembly plants in Canada, and the Chelsea Proving Grounds. While this may not directly point to an impending acquisition, it has certainly fueled speculation about BYD’s intentions in the North American market.

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BYD, which has rapidly expanded its global footprint, particularly in the electric vehicle (EV) sector, is partially owned by Warren Buffett’s Berkshire Hathaway, which holds a 6.9% stake in the company. This backing has provided BYD with significant financial muscle as it seeks to expand into new markets, including the highly competitive U.S. automotive market. The U.S. market, being the second-largest in the world, presents a significant opportunity. However, entering this market is no easy feat, especially given the current political climate and trade tensions between the U.S. and China.

Acquiring an established brand like Chrysler could theoretically offer BYD a smoother entry into the U.S. market, bypassing some of the hurdles that a new entrant might face. Chrysler, once a dominant force in the American automotive landscape, now has a much-reduced lineup, primarily consisting of the Pacifica. With future products like an E-segment crossover in the pipeline, Chrysler’s future seems uncertain, making it a potential target for acquisition.

Despite the denials, BYD officials’ visits to Stellantis facilities raise questions about the Chinese automaker’s strategy. Some analysts believe that even if a direct acquisition is off the table, BYD could be exploring other forms of collaboration or partnerships with Stellantis to gain a foothold in the United States.

The U.S. automotive market is highly competitive, with established players from the U.S., Europe, Japan, and South Korea all vying for market share. Introducing a new brand, especially one from China, would be challenging. However, with its experience and success in the EV sector, BYD could offer something unique to American consumers.

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Adding another layer of intrigue to the situation is a recent announcement by Frank B. Rhodes, Jr., the great-grandson of Chrysler founder Walter P. Chrysler. Last week, Rhodes declared on MoparInsiders.com his intention to seek investors to repurchase the former Chrysler Group brands from Stellantis. While Stellantis might be reluctant to part with Jeep® or Ram—both of which have become crucial parts of the company’s portfolio—Rhodes believes there may be a path to acquiring Chrysler, Dodge, and perhaps even reviving the Plymouth name.

These brands, steeped in automotive history, carry significant legacy and strong product identifications that could potentially thrive independently of Stellantis. Jeep joined the Chrysler lineup in 1987 following the acquisition of American Motors (AMC), and Ram became a standalone brand in 2009, spun off from the Dodge Truck lineup. If Rhodes can gain enough traction, the Chrysler, Dodge, and Plymouth brands could see a revival that capitalizes on their storied past while moving forward into a new era.

The situation remains fluid, and while both BYD and Stellantis have denied any current discussions, the recent visits suggest that BYD is exploring its options. Whether this will lead to a formal partnership, a different kind of collaboration, or simply a better understanding of the North American market remains to be seen. What is clear is that Chinese automakers like BYD are increasingly looking outward, and the U.S. market is a key part of their global strategy.