Fiat Chrysler merger sees Marchionne targeting No. 1 position image

Sergio Marchionne, seen as an executive that has great experience with turnovers, is also the architect behind the creation of the world’s seventh-largest automaker: Fiat Chrysler Automobiles NV.

The CEO is confident that one day the new entity would be able to challenge the top global position as the companies more and more struggle with sliding returns and the rising costs of developing new cars.

“There is room to create one guy which will be bigger” than today’s leader – Toyota, Marchionne said during an interview for Bloomberg Businessweek. “The industry needs it, as it’s still very fragmented.”

“There is always talk of mergers in this industry and obviously given the research and development costs that are being faced to meet new regulations, it certainly would make sense to some degree,” said Ian Fletcher, an IHS analyst in London.

Even if the newly merged FCA doesn’t go into another alliance deal, the company mulls the sixth place in the global ranking by increasing sales of the current brands, including those coming from the Alfa Romeo brand. Fiat Chrysler’s new shares would begin trading in New York and Milan on October 13. The company’s latest model reveal was the Fiat 500X, premiered during the 2014 Paris Motor Show.

Via Bloomberg