Report – Fiat Chrysler’s Marchionne shut off by GM after proposing alliance image

According to a recent report issued by the New York Times, Fiat Chrysler Automobiles chief executive officer Sergio Marchionne linked his ultra-quest for a massive tie-up towards larger rival General Motors.

According to the Times report, Marchionne back in March sent an email to Gm chief executive officer Mary Barra suggesting a mega merger but the quest was dismissed, with two sources that have knowledge of the email saying the letter revolved around industry consolidation. The details presented how automakers need to merge or ally to lower expenses and the email wanted to propose such a merger between GM and FCA – the biggest and third largest automakers in the United States. The tie-up could bring potential cost savings of billions of dollars and could have positioned the automotive giant as the biggest carmaker in the world. The report falls in line with the numerous previous rumors concerning Marchionne’s desire to culminate his career with a super merger, maybe in the United States. The world’s seventh largest automaker needs to compensate some company weaknesses and the executive wants another stepping stone to his legacy when he would end his role at FCA in early 2019.

The sources, who talked to the New York Times on condition on anonymity, said the idea of a merger between GM and FCA did not appeal to Barra or any top manager from the largest US carmaker, with a proposed meeting on the matter being “ flatly turned down,” according to the newspaper. Marchionne has made numerous public appeals to auto industry consolidation and his company has been rumored to tie-up with Volkswagen Ag as well to create the super-automaker able to take over the world domination duties from Japan’s Toyota.

Via Reuters