Fiat Chrysler Automobiles chief executive officer Sergio Marchionne is currently convinced the auto industry will see another large merger over the next three years, and didn’t deny the reports that he sent an email discussing such a possibility to larger US competitor General Motors.
Marchionne, the architect behind the creation of the world’s seventh largest automaker – Fiat Chrysler Automobiles – after Italy’s Fiat SpA merged with its wholly owned US subsidiary Chrysler Group LLC – has been a major proponent of industry consolidation. His calls for more alliances and tie-ups or acquisitions come as the future cars – called to be safer and greener – require massive capital investments that would be easier to handle if shared. “I am absolutely certain that before 2018 there will be a merger,” commented Marchionne. “It’s my personal opinion, based on a gut feeling,” he added, while on a tour at the automaker’s Melfi plant in southern Italy. He did not address the specific if his view surrounds the group he leads or another rival.
Numerous sources have been reporting that FCA’s chief executive has been envisioning a massive deal for the company, maybe in the United States as the group needs to address weaknesses in certain areas – though the sources did say Marchionne has been struggling to find a suitable partner. “I write lots of emails, one does not talk about those things this way,” he added, when questioned about a New York Times report that had him sending an email to GM chief executive officer Mary Barra asking for a meeting to discuss the possibility of tying up – though he was declined.