General Motors and Fiat-Chrysler don’t have the best working relationship as of recent. After provoking statements of a hostile takeover and all-out merger from FCA CEO, Sergio Marchionne, GM utterly turned its back, politely saying, “No, thank you.”
However, GM CEO, Mary Barra, has reiterated in the past the automaker is more than open to “strategic partnerships” for future development of technologies and vehicles. The Honda-GM fuel-cell partnership is a glowing example, as is the LG Chem partnership for the 2016 Chevrolet Volt and 2017 Chevrolet Bolt EV.
At the same time, FCA has decided to cut the slack that is the Chrysler 200 and Dodge Dart, as reported by our sister publication Fiat-Chrysler Authority, but Marchionne iterated he would like to find a partner to develop replacements for the midsize and compact cars.
“There will be a number of things that will be put in place in the next 18 months — things that have been agreed and detailed, that will effectively withdraw the Chrysler 200 and Dodge Dart from the marketplace, for a long period of time, during which we will be continuing discussions with potential partners,” the Italian-Canadian executive said.
The announcement followed the automaker’s news of restructuring for additional capacity to sell more Ram trucks and Jeeps, noting what FCA feels is a “permanent” market shift away from passenger cars.
Digesting all the information above, do you think GM should climb into bed with FCA to develop replacements? Obviously, there is plenty to think about from a business standpoint, but we feel this would be just the compromise Marchionne yearns for. There are plenty of partners lurking in the field, but GM has showed it’s capable of producing stellar compact cars, the 2016 Chevrolet Cruze, and midsize sedans, the 2016 Chevrolet Malibu.
Sound off in the poll below, and discuss below in the comment section. We’re eager to know how you feel.
Comments
After all the crap Mergio started with GM last year, this should not even be a poll on GM Authority. GM would gain nothing from this but a heap of troubles. Let FCA find some small foreign company to build their cars.
Partnering to build sedans does not mean an equity or ownership tie up.
Something similar to what GM has done with Honda for fuel cell vehicles or Ford with transmissions. There is no harm in that and no downside.
Why not allow FCA to buy the Malibu and Cruze and rebadge it as a Chrysler/Dodge? It would increase volume and efficiences for Chevrolet.
As long as there is no co-development arrangement and equity tie up I only see a benefit to GM with very little downside.
First off…NO
and secondly this article is only on here to get comments.
GM is not going to deal with FCA
No need. Why pair up to develop replacements with FCA? FCA drops the MID and Compact cars to focus on Jeep SUV’s and trucks. So FCA wants to go where the money is at? then let some other automaker work with them on the shrinking compact and midsize market.
It’s perfect for GM to gain more sales with their Cruze, Verano, Malibu and Regal- if the Dart and/or Chrysler 200 disappear.
No, GM needs to keep the focus on Chevrolet in the value segment. The General is great at re-skins (old school Pontiac, Olds, Saturn; today’s Opel), but GM already has enough going on with four divisions.
Also, getting tied up with FCA will make a mess for any partner. By 2020 the company will be deconstructed with Renault and PSA snatching up European assets and someone (Ford, Honda?) buying Jeep and Ram with this Chrysler deal in all likelihood being still born.
If anything, PSA should use Chrysler to enter America.
FCA would be wise to partner up with perhaps maybe Madza! I’m my opinion, the Madza 3 and 6 are among the leading vehicles in their respective segments. Plus This’ll allow the two manufacturers to build each other up. This’ll also give FCA an opportunity to add some excitement in their next Dart and 200 replacements, while avoiding creating anymore badge-engineered GM-based vehicles; which will inevitably come with the next Verano, Regal, and potential D2XX-based subcompact Cadillac.
The newest Cruze and Malibu are good enough, and the next Regal and Verano may be even better! But the platforms these cars ride on should remain exclusive to GM.
It’s almost as if the Chrysler division is on it’s death bed.
(a little off the compact & mid car talk) Dodge is getting to the point that the next gen Challenger will not be around for a few more yrs, and the last generation was always 3rd to the Camaro & Mustang.
Without looking perhaps the Dart was not even selling strongly the last year or 2.
I don’t want to see the Chrysler division become extinct but it seems like it may not be around much longer. Jeep and RAM are doing good though.
GM stay clear of this mess. no need to “partner in developing a mid and compact car” with FCA.
GM has built winners with the latest Cruze and Malibu.
No, let Marchionne keep running FCA into the ground and buy up Ferrari and Jeep.
No, No NOOOO!!! 1000x NO! Stay away from anything to do with the ‘great’ (yeah, right) Sergio!
FCA’s departure will only be a benefit for the rest of the industry. And what exactly do they do that GM doesn’t do better in the segments where they compete?
Cue the crickets…
No for FCA’s sake I hope they dont. The Dart is a good car so why lower its standards?
Why would General Motors want to do this.. as this would be putting money into FCA’s pocket as GM should do everything to put even more pressure on FCA which is to build products that compete directly with Jeep.
Metaphorically speaking, if GM were to get into bed with FCA it would come out with every STD known to man.
Why would GM even consider producing vehicles to steal sales of their own portfolio.
Tell Sergio take a hike!
The only way this could be done is if FCA is a full customer to GM not a partner. GM could build their cars on the GM platform but Chrysler has to design their own bodies and they pay GM for all the work.
The cars FCA would sell would not look like or feel like anything GM has and GM gets final approval of all designs.
But no way in hell they are a partner. A customer is fine as GM could kill the deal at anytime and Chrysler holds no part of GM ransom,
This is where the strong call the shots and the weaker should have little say.
That is the only way this will work.
As for me I suspect Mazda may be a partner they are considering. The killing of their cars is what Mazda has a lot of. Mazda lacks the trucks and SUV models so they compliment each other. Now the key here would be Mazda to call the shots and not FCA or Sergio. Also Mazda already share the Miata platform with FCA in the Fiat Roadster.
Mazda has a strong car line but they are not making money due to high development cost. The addition of the extra volume would help them as would the added profits of Jeep and larger SUV models they do not have.
The bottom line is GM is not doing a deal with FCA and I do not know why this was even posted. I would wager that we will see someone like Mazda or even a Chinese brand step in.
No! No! A thousand Times No! Sergio Marchioness dug this whole for himself let him get out of it. He used the cash cow of Jeeps and Dodge/Ram Trucks & SUVs to prop up Fiat and Alfa instead of investing in new product. Now no part of FCA has enough new product and what remains is getting old fast. (Old Daimler/Chrysler platforms) He’s also trying to spin off Ferrari and make himself a golden parachute Mary Barra and General Motors need to avoid any involvement with FCA like the plague.
Absolutely not , FCA quality and reliability are poor , while GM is building some of the best vehicles they have sold in the past 30 years. Any alliance wit FCA will only help FCA while creating more competition for GM brands and dilute their brand equity in the future. Many customers would know the vehicles that share roots and may confuse who actually engineered and designed the car . Competition is good for the industry, collusion will not be good for GM with Chrysler. Any sharing of platforms or technology has to with a manufacturer of least the equal of GM or leave them alone.
A lot of Chrysler’s problems could’ve been avoided. If they had set up a Living. Will 20 years ago
I can foresee the day when the big three develop and sell only suv’s and trucks, which is their specialty while letting the “Import brands” build and market passenger cars, which they tend to specialize in. The days of a company being all things to all people, ( despite for example, GM building some desirable and quality cars), may be over, as profitability margins shrink even further. So one day beside a GM dealership for real trucks and suv’s, is their partner, Honda which sells only passenger cars. Or a Ford truck store with a Toyota car store next door.
That is an interesting point but GM has been one of the leaders in the Electrical Automobile game. So you are underestimating one of their other strengths over the other Automobile manufacturers.