Fiat Chrysler Automobiles seeks merger with General Motors

Sunday, November 20th, 2016 - autos, cars, motoring, news

Source : Fiat Chrysler Automobiles seeks merger with General Motors

FCA boss Sergio Marchionne is actually keen to merge with General Motors, yet GM boss Mary Barra says the firm will go This kind of alone

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Fiat Chrysler Automobiles boss Sergio Marchionne is actually reportedly seeking a merger for his company with General Motors, yet GM officials are cold to the idea.

Speaking to industry journal Automotive News Europe, Marchionne said a merger between the two companies might result in “cataclysmic modifications in performance” for the two automotive giants. “I’ve gone through product by product, plant by plant, area by area, in addition to I’ve analyzed them all,” he said.

“I’ve obviously made some arbitrary assumptions about which architectures survive, which engines survive, in addition to the only deal in which offers them the same benefits as we potentially get … is actually us.”

However, Marchionne has also said in which GM officials have been cold on any negotiations, saying: “I’ve offered to sit down with them in addition to take them through the numbers

“They won’t listen. in addition to in which kind of abject refusal to engage … the capital markets won’t understand why you are rejecting the discussion.

“You may reject the deal yet you can’t reject the discussion. If you’re refusing to talk to me, in addition to you have seen nothing, you either think you’re above This kind of all, or you think the capital markets are full of schmucks in which owe you something.”

For its part, a statement for General Motors says the company has “responded appropriately” to any “outreaches” in which This kind of has received.

GM boss Mary Barra said back in June in which Marchionne had emailed her with proposals for a merger, yet in which the GM board gave “strong support” to the company continuing on its own parth. During a media briefing at GM’s annual meeting, Barra said the propsal was: “very much vetted with management in addition to our board, in addition to after we reviewed in which we are committed to our plan…in addition to we have strong support.”

“We have scale. We have leveraged the appropriate opportunities.”

In Europe, Fiat-Chrysler is actually currently focusing on the relaunch of Alfa Romeo with the fresh Giulia, in addition to on re-branding the Fiat brand into two distinct arms – dubbed ’emotional’ in addition to ‘rational’.

Industry analyst Max Warburton has warned investors in which merging FCA in addition to GM might be “an operational in addition to management nightmare” yet concedes in which “if anyone can smash through the issues in addition to make This kind of function, This kind of might be Marchionne.”

GM is actually seen as being the latest target of FCA’s merger aspirations. Back in April, PSA Peugeot-Citroën ruled itself out of a merger with FCA, at least until the French firm had completed its ‘Back from the Race’ revival plan. In May of This kind of year, FCA renewed its call for more mergers from the automotive industry.

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