John Elkann, the chairman of Fiat Chrysler Automobiles NV and also the leader of Italian holding company Exor, which controls FCA, believes the auto sector is heading towards further consolidation.
Fiat Chrysler Automobiles NV, the seventh-largest automaker in the world, was created last year after Italy’s Fiat SpA merged with its American subsidiary Chrysler Group LLC. Soon after the merger was completed numerous analysts and industry experts, as well as the mass media, predicted the carmaker would further seek another merger with a larger rival or a t least an alliance in the style of Renault Nissan. “I’m convinced that the industry needs and will see more consolidation in the future,” recently commented Elkann in a letter to Exor stakeholders. A member of the Agnelli family, the founders of the Italian carmaker Fiat, Elkann added his hope and vision would be reason and common sense were the drivers of associations in the sector, with the partners taking into account and fully appreciating the implications of identity and culture.
Fiat, led by merger architect and chief executive officer Sergio Marchionne, assumed control over the third largest US automaker after Chrysler went bankrupt back in 2009. In time, the healing company turned to be a crucial asset to the group, after Fiat itself was struck by weakness in Europe and South America – its largest regions. Now Marchionne has been hinting its disposition towards another massive deal, maybe in the United States, to address the company’s weak spots and leaving a larger than life legacy as he is set to retire sometimes in 2019.