Last summer, after Automotive News reported that Fiat Chrysler Automobiles had a Chinese suitor, FCA said it had had no contact with Zhejiang Geely Holding Group Co. Technically, that was accurate, as Geely Chairman Li Shufu was not talking with FCA but with its controlling shareholder — Exor, a holding company chaired by Agnelli family heir John Elkann.

Representatives of Geely and Exor met in London in July and August, three sources told Automotive News Europe. The initial offer, which valued FCA at €20 billion ($24.62 billion at current exchange rates), was rejected. Geely’s emissaries then raised their offer to €22 billion, with no success.

Two sources with direct ties to the discussions gave different views on why a deal didn’t happen.

The first source, speaking under condition of anonymity, said the sweetened offer was deemed too low. Exor was convinced it could have extracted more value by selling FCA in parts.

Elkann: Exor saw more value

Under that scenario, one step would have involved the spinoff or sale of FCA's Magneti Marelli parts business, a move FCA CEO Sergio Marchionne still wants to pull off this year.

Another step would have combined Alfa Romeo and Maserati into a separate company to be sold. A third would have seen the Jeep and Ram brands being sold as a package. Finally, the remaining European, U.S. and Latin American businesses would have been offered to a fourth buyer, possibly a Chinese group.

The second source said FCA was open to accepting the higher bid if Alfa and Maserati were excluded. Geely rejected that idea, and the discussions were over by the end of August.