FCA currently not in talks for a merger, Marchionne says image

Fiat Chrysler does not have any offers on the table that could eventually lead to merger talks, Chief Executive Sergio Marchionne admitted.

Fiat Chrysler Automobiles has been looking in the last couple of years for a partner to streamline its costs, but this plan has not been a successful one. Sergio Marchionne, the brain behind the merger deal that created the world’s seventh-largest carmaker, pushed for another massive transformation deal, aiming to join forces with General Motors, but the Detroit-based maker refused the offer. More recently, there have been some rumors regarding merger talks between Peugeot and FCA, speculations that were eventually dismissed by Marchionne. Speaking on the sidelines of the Geneva Auto Show, the CEO said that his company was not engaged in any other tie-up takes at present and a potential partner would need to have the same multi-brand strategy as FCA for a merger to work. He also wanted to reiterate that since GM rejected the talks, Fiat Chrysler was probably going to remain in its current state and another transformation would not happen, at least while he was still in charge.

Marchionne later said that GM, Volkswagen and to some extent Renault-Nissan had a similar strategy to FCA, while it was difficult to imagine how a merge with Ford could work given its one-brand focus. “When it comes to consolidation, we have always focused our efforts on companies that have the same DNA…you cannot merge with someone that does not understand you,” Marchionne said. “Volkswagen, GM are companies that understand this reality well, they continue to be points of reference … and to some extent Renault-Nissan … they have experience of multi-brands,” he said. “It’s difficult to imagine other alliances.” Marchionne said FCA had been approached by other auto makers but the options were not sufficiently attractive.

Via Reuters