Guangzhou auto group not buying stake in FCA, official says

Guangzhou Automobile Group Co (GAC), one of the major Chinese car makers, denied on Thursday that it had planned to buy a stake in Fiat Chrysler Automobiles (FCA).

"We currently have no plans for this (buying the stake) … GAC has never had talks with FCA in this regard," said a GAC spokeswoman, who declined to be named.

Italian newspaper Il Giornale, citing unnamed sources, reported that GAC, based in Guangzhou, the capital of Guangdong province in southern China, was considering making an offer for a majority stake in the Italian-American carmaker.

"We don't know how the report was produced," said the GAC spokeswoman. China Daily was not able to reach FCA for comment. Both companies have already developed a joint venture that enables FCA to manufacture cars in China, under the Fiat and Jeep brands.

In the first four months of 2016, the joint venture sold nearly 39,000 units of vehicles, a year-on-year increase of 211 percent, according to the GAC website.