General Motors, the largest Us automaker and the third biggest in the world, has consistently refused to engage in any sort of talks – let alone negotiations – with FCA’s Sergio Marchionne, who has been mulling a possible merger between the two companies.
Marchionne, which has been a fervent proponent of industry consolidation since the start of the year and later on was revealed to desire a partner for his Italian-American group, has developed a business “obsession” with the GM tie-up. He most recently talked about it during the Italian F1 Grnad Prix in Monza and his views on the matter could simply be a reflection of how he views the success of Fiat Chrysler Automobiles as an independent company. Meanwhile, the detraction from the idea of merger shows how CEO Barra and the rest of her staff view the prospects of GM as a stand-alone entity. With Marchionne claiming the auto industry is wasting its capital seems to imply GM might be chief among them and his argument that with him at the helm the true value of the merged companies would be presented and then enhanced.
The implication could see raised eyebrows at GM’s headquarters because the company has been addressing lately some of the issues raised by Marchionne – they have a ore concerted approach on capital spending, they placed wagers on growth targets – Cadillac in China or in-car connectivity. And they have been very feisty about cutting down the rotten “branches” – such as the unexpected Russia exit or the Chevrolet disappearance from Europe. But all these priorities also have nothing to do with a potential merger – either with FCA or for that matter with anyone else.
Via Automotive News