FCA Merger With GM Too Good to Pass Up: Marchionne

FCA Merger With GM Too Good to Pass Up: Marchionne

Fiat Chrysler Automobiles CEO Sergio Marchionne still believes GM should, at the very least, listen to his pitch for a possible merger.

General Motors has showed little to no interest in a possible merger and hasn’t agreed to meet with Marchionne to even discuss the matter. In a recent interview with Automotive News, Marchionne spoke openly and candidly at the possibility of a merger and its benefits, not just to FCA, but to GM as well. “We’re not talking about marginal improvement in margins,” said Marchionne. “We’re talking about cataclysmic changes in performance, just huge.”

The CEO claims he’s gone through “product by product, plant by plant, area by area,” and believes that the two companies combined would make $30 billion a year in cash.

SEE ALSO: Marchionne Tries to Merge with GM

But the problem is, GM isn’t even picking up the phone, despite Marchionne offering to sit down and show them the numbers. “You may reject the deal, but you can’t reject the discussion,” he added. “If you’re refusing to talk to me, and you have seen nothing, you either think you’re above it all, or you think the capital markets are full of schmucks that owe you something.”

[Source: Automotive News]

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  • craigcole

    Call me a skeptic, but all of this sounds like financial sleight of hand. Of course it all could be legit, I’m no MBA, plus I’m sure Marchionne’s forgotten more things than I’ll ever know.

  • smartacus

    He’s the only one and STILL THE ONLY ONE talking about a merger with GM.
    And he’s also doubling down on his idea of increasing Ferrari production (for “emerging markets” like China which lost more money in July than Germany makes in a year!)

  • HangFire

    Poor Sergio. No one will write him a check so he can go home before the next economic slump destroys FCA.

  • Ryan Dinshah

    Funny no-one seems to remember the Daimler-Chrysler “friendly” merger. Ummm, right. Where MBs quality dropped in free-fall faster than the stock market and Chrysler got marginally better. Maybe. Now we have FCA, with the Fiat 500 at the very bottom of the reliability charts and GM, who is lighting the world on fire. Whats Lincoln got thats even in the same galaxy as the ATS-V and CTS-V? And then what, a Chrysler 300 competitor? Hemi. Dont make me laugh. The CTS-V will do 200MPH. In a Caddy. Yup. And tuned at the Nurburgring. That shows GM is SERIOUS. This potential merger would prob be the biggest mistake in the history of automobiles, at least for GM. Maybe Fiat would learn how to shed “Fix It Again Tony”. Maybe.