Hypothetical Analysis: Could Fiat Auto Replace GM Europe Through Partnership Or Merger?

The 2017 New York International Auto Show was full of new debuts, but it’s been responsible for a few hypothetical scenarios and rumors surrounding Fiat Chrysler Autos. The cash-strapped automaker’s CEO, Sergio Marchionne, has long been on the hunt for a merger to seal his legacy ahead of his rumored retirement next year.

But, Marchionne has since called off his search, stating he’s now concerned with leaving FCA debt free. In the process, he’s even said he’s open to selling off Jeep and Ram, the automaker’s money printers. Volkswagen and General Motors were brought up in the discussion, according to Fiat-Chrysler Authority.

Now, here’s the latest rumor. GM and FCA do merge, and Fiat Auto becomes the new GM Europe to replace what the automaker most recently sold off with its Opel and Vauxhall brands. In North America and abroad, Chrysler is diluted and Dodge becomes GM’s reborn Pontiac. Meanwhile, Ram is merged with GMC and Jeep, Alfa Romeo, and Maserati would remain standalone brands.

It’s likely a long-shot, and the rumors are fairly unsubstantiated, but they do find ground after Marchionne simply replied “Yes” when asked if he would sell Ram, Jeep or both to GM. If only a few brands were sold off, though, FCA wouldn’t have much to offer in an all-out merger.

It’s yet another wave crashing in the storm of Marchionne’s darting behavior. Previously, the Italian-Canadian executive said GM was less attractive as a merging partner after selling Opel and Vauxhall. GM has previously outright denied any intention to merge with FCA.

Former GM Authority staff writer.

Sean Szymkowski

Former GM Authority staff writer.

View Comments

  • It would be a great idea to break away from Chrysler if there is a chance.

    My vehicle was at the dealership in service for SEVEN weeks. Chrysler was willing to chip in $0 because they ‘Just couldn’t do it’. My vehicle is less than ten years old but due to the year and mileage of my vehicle Chrysler was not willing to help in any sort of way. No incentives and no rental.
    When my check engine light turned on my twins girls were three weeks old, this left my wife at home with no vehicle. If an emergency happened she would have been stuck at home because I need a vehicle to go to work.
    Waited four weeks for a part to find out that part was faulty, but I wasn’t told this, I was told the vehicle went into limp mode and are still looking into the issues. This was a stall tactic to wait on that same part to arrive two weeks later.
    I have always owned a Dodge vehicle, 20 years, and have taken my vehicle to have serviced for 10 of those when I bought a new Dodge vehicle. I also have been taking my wife’s vehicle in here for service for 7 years. I have been a loyal customer but due to this service, or lack of, I blame Chrysler for their terrible customer care.
    Due to this horrific experience I will no longer be purchasing a Chrysler product.

    • I see on the contrary a long term cooperation between PSA and GM. The acquisition of Opel by PSA is not done in order to end the cooperation agreement concluded in 2012 (or 2011?), but to deepen it.

      From the March 6, 2017 press release "Opel/Vauxhall to join PSA Group":

      GM and PSA also expect to collaborate in the further deployment of electrification technologies and existing supply agreements for Holden and certain Buick models will continue, and PSA may potentially source long-term supply of fuel cell systems from the GM/Honda joint venture.

      In the 2016 PSA report is also talk about OnStar.

      For the place of Jeep and Ram in FCA's long term plans, check fcagroup.com

Recent Posts