It’s no secret Fiat Chrysler Automobiles CEO Sergio Marchionne wants consolidation in the car business. He’s actively trying to find another company to merge with and he’s even looking in his own backyard.
Marchionne Tries to Merge with GM
In fact GM CEO Mary Barra confirmed today that she received an e-mail from the Italian-Canadian automotive magnate. The message was thoroughly vetted by her management team and board.
After reading the note she said they’re committed to their own plan and thinks it will best serve the interests of GM and its shareholders. It’s reported that Marchionne has been trying to woo activist investors, to convince them to push for an FCA-GM merger.
Barra has said that they will not entertain anything that distracts from their short- and long-term profitability goals. GM is shooting for 10 percent adjusted margins from their North American operations as early as next year. They’re also doing extremely well in China and don’t want to screw that up.
It’s unclear how a merger between two gigantic global automakers would work as the scale is immense.
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