General Motors’ chief executive officer, Mary Barra, recently unveiled that her rival, Fiat Chrysler Automobiles’ chief executive Sergio Marchionne indeed sent her an email to propose a mega deal.
FCA’s Marchionne, ever since he successfully completed the merger of Italy’s Fiat SpA with its American subsidiary Chrysler Group LLC to form the world’s seventh largest carmaker, has been very supportive of the idea of industry consolidation. He has embarked lately in an all out campaign to attract competitors and investors, in a bid to secure another partner for his company. Barra acknowledged that Marchionne sent her an email proposing a potential tie-up, but the Gm board of directors favored with “strong support” her plans for the company to continue on its own. FCA CEO’s idea was “very much vetted with management and our board, and after we reviewed that we are committed to our plan…and we have strong support,” commented GM’s top executive during a media brief tied to the automaker’s annual shareholders meeting.
Marchionne and FCA chairman John Elkann also confirmed they had reached out to their competitors, with GM in particular and recent reports are now claiming the Fiat Chrysler leader is trying to convince investors to offer their support to his cause after failing to convince managers. Marchionne says he believes greater emphasis on collaboration should be the focus for automakers, as the industry’s costs are rapidly rising in the bid to create safer, autonomous, fuel efficient and connected autos.