Fiat Chrysler Automobiles (FCA) CEO Sergio Marchionne is convinced that a large scale merger in the auto industry is coming.
“I am absolutely certain that before 2018 there will be a merger,” said Marchionne, without specifying whether or not it would involve FCA. “It’s my personal opinion, based on a gut feeling.”
Reportedly, Marchionne sent e-mails to GM in the past seeking a merger with the American automaker. Though he has declined to confirm it as the truth, he did say, “I write lots of emails; one does not talk about those things this way.”
Marchionne sees the need for merger in the auto industry to help capitalize on economies of scale in order to save money. Automakers all over the world develop the same technologies independently of each other, a costly arrangement that Marchionne would like to see gone.
“In principle, Marchionne is right — the auto industry develops the same things ten times over,” said Karl-Thomas Neumann, CEO of GM’s Opel branch.
[Source: Automotive News]
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