With Fiat-Chrysler Autos’ CEO, Sergio Marchionne, making some very outspoken statements in a recent interview over the idea of his company merging with General Motors, it has brought the topic back into the spotlight.
As much as analysts want to weigh in, and Marchionne wants to insist on the great deal he feels it is, GM has simply brushed it off each time. And that’s a good thing.
It shows GM has a focused mindset for the future, and doesn’t plan to veer off course. As a recent Automotive News report tells, GM simply has no benefit to merging with FCA.
Most importantly, General Motors has become a leader in the Chinese market. Despite recent losses, it stands far ahead of FCA in the market. GM has also been busy, to use a quote from CEO Mary Barra, “merging with ourselves.”
What she means by this statement is the rapid consolidation of vehicle platforms to build multiple vehicles on only a few blueprints. GM lags behind Toyota and Volkswagen Group in the regard, but an FCA merger could be catastrophic in the reorganization plans.
Finally, FCA seriously lacks any sort of alternative fuel technology to be of any relative interest to GM. While GM is just now beginning to see the rewards from investing in the Chevrolet Volt program (applying the technology to other vehicles, and moving forward with the 2017 Bolt) FCA lags behind with any future technology in that regard.
Simply put, former GM executive Bob Lutz may have said it best.
“You can put lipstick on the pig for a while by doing things like the Hellcat. That’s great, it probably makes a lot of money. But that isn’t the future.”