Chinese carmaker Geely not buying Fiat

Chinese carmaker Geely denied that it planned to make a takeover bid for Fiat Chrysler, the world's seventh-largest auto manufacturer.

BEIJING (REUTERS) - Chinese carmaker Geely denied it is buying Fiat Chrysler.

Geely was one of several Chinese manufacturers cited by US website Automotive News to have allegedly made an offer for Fiat Chrysler. The site cited anonymous sources saying the Italian automaker rejected Geely's bid as too low.

Fiat Chrysler declined to comment.

But the news of a possible takeover sent its stock to a 19-year high.

Autotrader's Ms Michelle Krebs says the news of a Chinese automaker wanting to buy Fiat comes as no surprise.

"Fiat Chrysler has made it clear that it is making for a partner, a merger, a buyer, especially as Sergio Marchionne looks towards retirement. He retires at the end of 2018. And he's long felt that the industry needs to consolidate, and Fiat Chrysler needs a partner." said Ms Krebs, senior analyst at Autotrader.

Speaking of partners, Fiat Chrysler joined an alliance led by BMW and Intel to develop self-driving "robotaxis".

The company is already in a partnership with Alphabet's Waymo on autonomous vehicles.

Ms Krebs says that teaming up with others is a logical step for Fiat Chrysler, as the company does not have the deep pockets and know-how to pursue future technologies on its own.