Sergio Marchionne, purchase the chief executive officer of Fiat Chrysler Automobiles NV, buy the world’s seventh largest automaker, continues to call for auto industry consolidation, even after being rebuffed by rival automaker General Motors.
Artisan in the art of mergers – after the executive managed to successfully tie-up Italy’s Fiat SpA to its subsidiary Chrysler Group LLC (now called FCA US) last year, Marchionne seems unwilling to leave the world automotive stage in 2019 before another world class merger or acquisition. He continues to preach the need for further consolidation across the industry, which is seen by analysts, managers and industry experts alike at a turning point. Marchionne recently sent a “corporate love” letter to his peer at General Motors, Mary Barra, but he was swiftly refused. “I meet with CEOs all the time. We have always discussed the possibility of cooperating on particular issues,” Marchionne said last week. The full extent of consolidation, if properly executed, will cure all of the ills. But you have to go the distance.”
Back at the end of April, he went as far as to present a 30-page dissertation on the reasons going in favor of consolidation, claiming automakers are currently throwing away billions – but Barra, Ford CEO Mark Fields, PSA/Peugeot-Citroen CEO Carlos Tavares, Toyota CEO of North America Jim Lentz, and others have reportedly disclaimed any interest in FCA’s proposals. But analysts believe the automaker has positive reasons to call for further consolidation, adding they might be successful at least in securing a discussion partner in the near future.