Talk about a turning of the tides. It was reported previously Fiat-Chrysler Autos would be simmering down their calls for industry merger, and revisit the idea in a few years. Mainly, General Motors has been the target of such calls from FCA CEO, Sergio Marchionne.
Such patience has been short lived.
His tone released an air of hostile takeover into the room, with Marchionne explaining his degrees of compromise saying the following:
There are varying degrees of hugs. I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you. Everything starts with physical contact. Then it can degrade, but it starts with physical contact.
GM’s blunt response? “Why,” asked a ranking GM official, “should [GM] bail out FCA?”
Marchionne is adamant a merger would create the best deal for both company’s shareholders, with the FCA Chairman stating he has gone through each vehicle, brand and plant to analyze the operation.
“I’ve obviously made some arbitrary assumptions about which architectures survive, which engines survive, and the only deal that offers them the same benefits as we potentially get … is us,” said Marchionne.
He also didn’t hide the fact he has reached out to General Motors numerous times, and offered to sit down with GM CEO Mary Barra to discuss the possible numbers. GM says it’s busy “merging with itself.”
Marchionne’s adamant tone continued stating, “You may reject the deal but you can’t reject the discussion. If you’re refusing to talk to me, and you have seen nothing, you either think you’re above it all, or you think the capital markets are full of schmucks that owe you something.”
Things sound like they’re getting a bit dicey inside FCA.