Fiat Chrysler Automobiles’ chief executive officer Sergio Marchionne apparently has no upcoming plans to make another merger offer to its larger competitor General Motors.
According to a New York Times report, Marchionne has no intention to once more try and secure a merger between his company, the third largest US automaker and the seventh biggest in the world, with GM, the largest US automaker and the third biggest in the world after it was initially rejected four months ago by his contemporary CEO Mary Barra and GM’s board of directors. “I was rebuffed once, and I won’t go back to get my nose bloodied a second time,” commented Marchionne according to the paper, with the CEO speaking on the sidelines of the ceremony kicking off contract negotiations with the United Auto Workers union. “The pitch is that there is a better way to run this business,” he added. “I’ll wait, and we’ll get it done.” These comments show his determination to not give up on his pitch to lower the number of players in the manufacturing sector.
His latest comments do seem to go against what FCA Chairman John Elkann said to the Wall Street Journal in an interview earlier this month that his company was not ready to give up the idea of forging a merger with General Motors. Marchionne is also aiming for industry consolidation akin to what happens among suppliers, which are closing ranks to better compete across the wide spectrum of the automotive sector.