Speaking to a group of media at the 2015 Frankfurt Motor Show, Mary Barra, General Motors CEO, tackled the idea of a Fiat-Chrysler Autos merger.
Her final answer? A definite no.
“We have studied this issue thoroughly and in great detail, with both internal resources and external experts and it is not in the best interest of the General Motors shareholder,” Barra told Reuters.
She insisted GM has the scale and resources it needs to invest in its own technologies, without a merger or tie up with another automaker. Specifically, she highlighted the 2016 Opel Astra, which has been completely worked over into a world-class compact car with the company’s own resources.
“When you look at the work that we are doing to put connectivity in the vehicles … looking at the forward looking technologies that you need in a vehicle, also all the propulsion technologies … that is our focus, delivering the best return to our shareholders,” she said. “We have the scale necessary to accomplish that.”
Additionally, she said she has never directly discussed merger possibilities with FCA CEO, Sergio Marchionne, and has not received any follow-up requests after she rejected the idea via email.
This hasn’t stopped Marchionne from finding a way to woo GM into a merger, as he has gone on the record recently saying it only makes sense to consolidate the industry to reduce redundant investment.
Comments
Well we all know this won’t be enough for Mergio Sergio. He will continue to moan and drone on about how much needed this merger is. I did read elsewhere that when Mary Barra was asked if she was worried about any sort of of hostile takeover, it was stated that she seemed unconcerned and said they(GM) have good relationships with most of their key stakeholders. This tells me that the Board and Barra at one point were probley concerned about it however they consulted with the big players of shareholder’s, when they said they were not interested then that killed that. Also she mentioned what I said before, that even if FCA somehow did attempt a takeover that the antitrust sanction’s would put an end to it right from the start. That’s why we have antirust laws to prevent hostile takeovers and unwanted mergers.
Good for Mary. It looks like from the beginning that FCA is desperate. Marchionne seem so arrogant that he believes “Why wouldn’t” GM want to join forces. Either that or FCA has realized Chrysler is a turd like all the other companies that have bought and sold them.
She doesn’t get the game. She’s dealing with a bully. Her language has to go up a notch of harshness to shut the bully up.
“We know what FCA would gain by merging with us, but GM has absolutely nothing to gain by merging with FCA.”
That sets a reporter up to ask, “What would FCA gain by merging with you?” Then Barra can laundry list GM’s strengths.
When playing a game like this you play from a position of strength.
Talking a tough game dose nothing laying hard ball buisness wins the game.
This is a buisness war not a PR war.
The tough talk only works in movies.
We already have one babbling idiot I a sweater we do not need one from GM.
Never play fair and never telegraph you punches.
The truth is here that the scale of GM really was never a question outside of Sergio.
He is in need of cash and technology two things GM has a good amount of.
Mary working from a position of strength and power is the way you deal with a bully. Show no fear and desperation.
To lash back in the financial world would be as foolish or desperate as Sergio has shown. But in his case he is desperate. GM has some big guns near by and if the idiot makes a move he should not get far. My only real worry is how much would it cost GM to defend themselves in a fight. I know they can win but how much financial damage would he do.
I wonder if the UAW will force this. The news today says that UAW president and Sergio are good friends and he might become Sergios wingman.. My worry is with the UAW holding the most shares of GM that he can force GMs board to talk to FCA
The UAW could not do it alone even with the help of the main backer of Sergio.
For him to do this GM stock would either have to drop or he would have to get a series of people to help him and a few to defect from GM. Even then GM will not go without a fight and some things to play on their part.
GM has more money and resources than FCM. GM could fend them off but the question is how much damage would be done in the fight.
Goodyear tire fought off a take over by Johnathon Goldsmith back in the 80’s and won, But it took them a decade to recover from the damage that was done. They are in good shape today but they had some lean years and made investing in new product tough for a while. Once they were able to invest in new better product they recovered fast.
My fear is that fighting FCA would damage GM’s work on new product for 5-10 years. It would slow R&D Investing.
I am extremely proud of Mary Barra, and of the great product that GM is building, and creating for the future. Sadly, and history proves that Chrysler has not been known for their ‘In house creativity’ and engineering since the 1950’s…Iacocoa attempted to bring glory back to Chrysler, which left when he left…Their one strong point is Jeep, which GM in hindsight, should of grabbed when they had the chance, but does not need to continue to Grow
Do anyone really think that, short of the hand of God reaching down to sew his lips shut, Marchionne is going to stop this annoying babble? I suspect CEO Barra has done the one and only proper thing to do. She has set up a rule in her outlook that all emails from Marchionne gone directly to Ford.