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General Motors CEO Mary Barra Shrugs Off FCA Merger Skepticism

GM CEO Mary Barra recently quashed the notion that GM could one day merge with Fiat-Chrysler (FCA).

While speculations and rumors of such a merger have continually floated around the Internet like balls in an old bottle of Orbitz, Barra’s comments seem to (hopefully) finally put the endless swirl to rest.

“We’re not going to entertain anything that distracts us,” Barra said to an analyst on the consolidation, in reference to GM’s short-term and long-term goals.

While FCA CEO Sergio Marchionne has no doubt fueled the fire by repeatedly stating that auto consolidation is necessary–and that he’s open to a merger with GM or Ford Motor Company – both GM and Ford have publicly rebuffed his off-hand courtship.

“We laid out a very comprehensive plan that takes us through the early next decade, with milestones next year and beyond,” The Detroit News quoted Barra as saying. “As we’ve communicated, we think there’s tremendous opportunity for us within the business as we look at efficiency measures, as we look at truly achieving the scale that we should have because we’re already in that top tier of the auto industry, among the largest OEMs,”

Barra said there may be a need for other OEMs to band together, as they may need more capital over the next decade to develop new technologies. But she said GM has already made significant technology investments, which includes a lead in the deployment of 4G LTE in-car technologies.

As for Ford?

“We’ve very happy with where we are,” said Joe Hinrichs, Ford President of the Americas. “We’re not looking for a partner. We’ve spent the last eight years or so consolidating Ford as one company. We all recognize the value and need for scale … we believe we’re big enough to do that with our volume as is.”

‘Nuff said.

A far-too-tall Ontarian who likes to focus on the business end of the auto industry, in part because he's too tall to safely swap cogs in a Corvette Stingray.

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Comments

  1. What has Chrysler have that GM would have any interest in other than Ferrari that is not included or the Wrangler?

    Mr Marchionne is showing signs of desperation and I suspect FCM is in deeper financial trouble than I have first suspected. I read a Wall St article that stated that in 10 years FCM and Mitsubishi both may not be with us or bought out by another company.

    I get the feeling in 10 years Jeep and Ram will be owned by VW or someone who needs a truck and SUV and that is all that will be left. Ferrari will be on their own as FCA has already put that in motion.

    These are tough times for MFG and the last thing any want to do is tie themselves to a cement block in deep water.

    I expect we will see more deals like Ford and GM has done on the Transmissions but no major mergers for GM in the near future.

    Reply
    1. Fiat is strong in south America, not that that has helped them that much right now. Small cars small profits and all. And I’d rather Jeep and Ram go to Nisan or Honda than vw.

      Reply

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