FCA’s Marchionne has no new details on approach for consolidation with GM image

Fiat Chrysler Automobiles chief executive officer Sergio Marchionne recently disclosed there is nothing new to report on their bid to partner or merge with larger rival General Motors.

Fiat Chrysler, the third biggest US carmaker and the world’s seventh largest has tried to approach its larger competitor for some time now. General Motors, the biggest US carmaker and the world’s third largest, has rebuffed the offer to sit at the negotiations table, both through the voice of CEO Mary Barra and the company’s management board. But FCA’s Marchionne continued undeterred and has decided to swing through GM investors, seeking support from activist stakeholders. Marchionne recently said there is no news on the merger progress but that auto industry consolidation is still a necessary act. “The (need for) consolidation remains valid, no one has questioned its economic rational,” commented Marchionne , present at the introduction of the refreshed version of its popular Fiat 500 small hatchback.

Marchionne has also been asked if there would be any opportunities stemming from the ongoing clash between two former alliance partners – Germany’s Volkswagen Ag and Japan’s Suzuki Motor. The chief executive officer said it was too early to tell. FCA’s boss has been a vocal proponent of auto industry consolidation, claiming automakers are investing massive amounts of money to deliver rivaling models and costs are surging faster than profits. Merging or partnering two previously rivaling companies would bring huge economies of scale and complement their model lineups in new ways.

Via Reuters