It’s been the talk of the town recently: Fiat-Chrysler Autos CEO Sergio Marchionne wants to merge FCA with another automaker. Badly. The reasoning? Too much redundancy in research and development which, in the end, means wasted money by automakers developing the same technologies.
An all-out merger is Marchionne’s answer to this. But no one has stepped up to be FCA’s scapegoat yet. Notably, General Motors has been on his radar for some time, but GM CEO Mary Barra has completely rebuffed the idea herself. Autoline has taken a stab at why an FCA and GM merger would do disastrous things for the Chrysler brands.
As the video highlights, there is oodles of value packed into names like “Hemi” and “Hellcat” these days. Marchionne has been outspoken on consolidating powertrain operations with another automaker, a deal he could strike with anyone should he become serious. The fallout of this move would mean saying adios to Hemi credibility and name recognition, especially if die-hard Mopar fans begin seeing small block V8s under the hood.
FCA could easily reduce their development costs by outsourcing powertrain development elsewhere, but higher-ups seem bent on a merger solving their problems, even though there are simpler solutions. Though, things have heated up as GM and FCA have taken on investment bankers to guide them through FCA’s courting of GM investors.
Will it actually happen? Probably not. But watch the video for yourself and talk to us in the comments down below.