Fiat Chrysler Automobiles chief executive officer Sergio Marchionne has recently leveled up his drive for an automotive industry consolidation, bidding for a manufacturer mega-tie-up.
During the weekend in an interview at The Council for the U.S. and Italy, Marchionne said the consolidation bid is getting urgent as the competitors are spending two billion euros ($2.2 billion) a week just to keep up the development pace of new products. FCA has been trying to find a potential candidate for the envisioned mega-merger, but so far the rivals, including General Motors, have had a deaf ear. “Intelligent people would agree that a remediation of that waste is useful,” commented Marchionne. “The faster you do it, the better it is.” The chief executive officer has been adamant about the industry consolidation immediately after he successfully united last year Italy’s Fiat SpA with wholly owned subsidiary Chrysler Group LLC. He has been pushing for the mergers, partnerships or acquisitions as a shield against rising costs from developing new technologies – from autonomous vehicles to green cars. The other automakers so far have downplayed his bid, as Europe and the US are relieving pressure and putting restructuring behind closed shelves.
Marchionne is a well known and outspoken CEO, and has decided to appeal to investors as industry executives have proven too skeptic. The push for a partner also come as FCA spends billions in a drive to lift sales by more than 50 percent to seven million units by 2018 under a five year strategy. Financing for the plan would also come from this year’s Ferrari IPO that would see the ultra-luxury automaker traded on the New York Stock Exchange and independent.