Fiat-Chrysler CEO Sergio Marchionne acknowledged merging the company with either General Motors or Ford is “technically feasible” in an interview with Bloomberg at the Geneva Motor Show. Marchionne has long held the belief that only the largest automakers will survive in the future, saying he’s convinced “this industry needs to move quickly towards the path of consolidation.”
If Marchionne was looking for a merger right now, the only criteria would be “saving the highest amount of capital” in new vehicle development. He says the amount of capital investment required of automakers now will eventually be too much for some companies to handle, which will prompt execs to consider merging their companies.
Marchionne said “there’s bantering that goes on all the time” between industry professionals in regards to bringing Chrysler and GM or Chrysler and Ford together, but there is so far “nothing substantive.” Ford and GM are busy focusing on their own business, with GM’s Tony Cervone saying “we have our strategy and we are working on it. (Marchionne’s statement) is not worthy of a comment.”
Comments
lol.
LOL X2
This guy is like Captain Smith on the Titanic. Fiat took in Chrysler because they wanted the trucks and Jeep. Now that they have them they can not plug all the leaks that Fiat has.
His best shot is if VW takes them and salvages the profitable products and dumps the rest. Fiat has had major money issue for year and this was why GM stepped away from them as a partner years back. GM had their own issues then pre bail out and the Fiat deal was going to just add more concrete to their sinking boat.
Folks they spun Ferrari off for a reason and it was not to expand sales.
Sergio is out fishing for help and while he may get a new partner if it is not VW it will be someone like Suzuki that is in nearly as bad shape as Fiat.
Anyone notice how long it has taken for them to revamp the Chrysler car lines? There is a reason and it has all to do with the lack of money.
Actually GM didn’t walk away, they couldn’t secure the $12 Billion Loan(That’s on top of the $18 Billion already given) from the Government back in 2008 because the Country fell in Deep Recession or it would’ve been a done Deal. But everything else you said is so on point!!!! 😉
Either way it is better Chrysler is on the Fiat hook now and not the reverse.
not bad gm + fiat and chrysler.
Ford and GM could join. But at the same time sticking to cooperate with the old habits. Everyone has skills and knowledge.
If GM can and are capable of great things to do then it certainly would be awesome.
New GM’s management may be able to, and will, but it is definitely not easy. If done poorly, and parts of things to do and let the bankrupt negative products will not, of course, meaningless. But if GM has dreams and plans who wants to become and what it would be awesome.
Anyway, the moment I envy the VAG group, that’s how it will work and grow. and if he is strong and of good quality. And also produces a huge profit. VW itself is already going out of the Opel.
I am of course sad that makes me jealous VW and VW has to be approached as an example. That is an example of VW few years ago, I still did not know how to think but today it is so sadly.
principle or the VAG group is not possible to get better as the VAG group consists of these products already. VAG group on some products still have a chance to compete in the future may be. For example, the Opel. VW, Opel will go away but might be able to compete with skoda. sad
I do not know if all the VAG group is a product which has gone bankrupt. Vag Group only takes on its products, and carry them to the top. VAG Group Elevates VW-SEAT-SKODA.
SAAB went bankrupt. and whether there are additional products that have gone bankrupt GM
Yes it was old GM, and the old GM’s management.
VAG Group takes on its FIAT aahhhaaaaa and good bye
GM FIAT500 and OPEL ADAM not bad and All global market belongs to GM
It’s thoughts like this from clowns like him that have served to ruin the heart and soul of genuine auto companies. Turning everything that was once genuine and real into nothing but soulless ‘brands’ held together by badge engineering practices. If I want a Chrysler, I want a genuine real Chrysler. Not a Ford Chrysler nor a GM Chrysler. Brands, brands, brands… blah. How about keeping it Real. The way things used to be done when the classics were built. Before forgery obsessed fools like this kicked off a never ending race to the bottom and their own irrelevance.
If you can’t stand on your own, it’s time to sit down.
Fiat has few working parts outside of Brazil where Chevy holds to much market share. Also, a merged company would have too much capacity in Europe and need to shudder a majority of FCA plants. In addition, no one would want an American GM Alfa Romano.
Only Chrysler core brands are worth buying in an effort to gain share.
The truth is only Jeep and Ram are worth a damn. The rest is just money down the toilet. Their car divisions are in shambles.
The new small and mid size cars are as reported better but still just re bodied imports with mixed reviews. They still have no real smaller car program. The larger RWD cars are old and in major need of remake but that is still a couple years off. Their warranty issues have not improved.
They may have a Hellcat but they have little else going. Chryslers turn around is at least 5 years behind where GM is now. The best I think Fiat could hope for is VW coming in and cherry picking what they think they can salvage.
Just look at the Chrysler luxury car division and see that they are worse off than Lincoln with only one real car. At this point they have decided to make them a value luxury car so right now Is about as good as it gets.
My fear is what will happen to Jeep and Ram under the foreign management. Will they put the people who understand these segments in charge?
It will be interesting to see if the Renegade takes off with new customers or flounders with the base. The die hard Jeep folks look at it like a Compass.
You make plenty of good points Scott but also I would never see the Government approve a merger with GM or Ford. What, then you would technically have the Big 2. It will never happen. Like other people said here maybe they can merge with VW or Mitsubishi but not GM. I would quit buying new cars altogether if GM went in cahoots with FCA.
In SM comments I’m basically hearing that FCA doesn’t have the resources to fight with the big boys and they are worried about falling behind.
While I think SM is right in that there will need to be a consolidation for some auto manufactures to survive I don’t think an FCA – GM tie up is a good solution. Companies like Mitsubishi and Suzuki are going to need to find new parters to survive. Possibly FCA should be looking in that direction to form alliances with some of these other smaller manufacturers.
Erik you have the right idea as this is an issue for the entire industry. Even the strong MFG ‘s are looking to save development cost as they are so high anymore.
The large companies even like Ford and GM are sharing Transmission cost and BMW and Toyota are sharing platforms.
Look even for companies like Honda to look for dance partners to spread out cost.
In the case of Fiat they have little capital and are much like GM before the bailout. They have too many brands and too many models in Europe. They need to consolidate down to fewer names and models and play to their strengths. This mashes some toes and hurts some consumer feelings but what ever divisions are not paying their way and models not making money need to be eliminated.
Right now SM only has one option before he has to make cuts and that is to merge. While they have some things worth joining for they still have too many liabilities.
VW may take them in but they will also cut many areas they do not want or overlap. VW would love to have Jeep and Ram. They would also like Fiat but Alfa and Lancia are at risk as there is not much there anymore other than names. Alfa could be saved if you invested but the question is who would.
Companies like Suzuki and Mitsubishi will need help soon but few want to join them and Fiat is not really the kind of savior they need.
Even Mazda and a few other MFG’s are at great risk as they need help. Mazda is a good company but their scale is really hurting them. They would be an appealing merger for a strong MFG but not a weak one. Suzuki has some merit too but Mitsubishi is as bad of as they come right now.
I at some point think the Chinese may come in and eat up some of these MFG’s as they are looking for traditional names and dealer networks where they can market their cars through. They have held back as they have even struggled inside their own country but at some point they will break out and try to beat everyone on cost.
Crysler is chrysler. cadillac is cadillac, buick is buick, opel is opel, ford is ford, audi is audi, bentley is bentley.
JEEP srt film
GM-FORD-VAG