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Fiat Chrysler CEO says combination with GM, Ford 'feasible'

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GENEVA (Bloomberg) -- Fiat Chrysler Automobiles NV is open to a combination with General Motors

or Ford Motor Co., and a deal with one of its larger U.S. counterparts would be “technically feasible.”

 

“We don’t have any restrictions,” CEO Sergio Marchionne said today in an interview in Geneva.

The condition for any dealis “saving the highest amount of capital” on developing of new vehicles.

 

“There’s bantering that goes on all the time” he said, when asked about talks with GM and Ford.

Still, there is “nothing substantive.”

Marchionne, the architect behind the merger that created Fiat Chrysler, has been a vocal proponent

of consolidation in the auto industry. High costs for developing cleaner cars and adding self-driving

features put pressure on traditional automakers, which also face the threat of new competition from

the likes of Apple Inc. and Google Inc.

 

Marchionne sounded less enthusiastic about the potential of tying up with PSA Peugeot Citroen, doubting

that the French manufacturer would solve Fiat Chrysler’s problems. He also said he never had talks with

Volkswagen AG executives about a combination.

 

In recent months Marchionne has sent several signals that he is looking for a potential merger partner.

He said he has an ideal partner in mind, but would not disclose who it is.

Contact Automotive News

 

 

So what's Sergio's game?

He's raided FCA NA's coffers to fund rebuilding Fiat's captured European brands

but now wants other competitors to do Joint venture vehicles with FCA?

 

Come on, this guy wants everyone else to pay Fiat's way....

Edited by jpd80

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A joint venture has to be mutually beneficial for it to work for both parties. Why would GM or Ford be interested in a JV with Fiat?

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I agree there should be more "under the hood" sharing going on. Engines, transmissions, etc... Kinda like what Ford and GM are going with the new trans. It saves money in development and standardizes things a bit in the process. I think we are going to see way more of that in the near future as government regs get stricter.

 

Edit: not necessarily with FCA, but more as a general automotive industry thing.

Edited by Intrepidatious

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Hello, I'm a dead beat CEO who wants everyone else to pay for my plans,

as an equal partner I'll supply the brains, you supply the cash to build my range up against yours?

 

Actually, that sounds like the day Rick Waggoner visited Bill Ford....

Edited by jpd80

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I know we tend to rag on GM's management, but with GM, they display gross incompetence at times.

 

I am wondering if Sergio is insane!

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Hello, I'm a dead beat CEO who wants everyone else to pay for my plans,

 

This, pretty much.

 

This is Sergio looking for deeper pockets to keep Fiat afloat.

 

Fiat, broadly, is a parasite that is in the process of killing its host organism. Sergio is busy looking for a new host.

Edited by RichardJensen

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Hello, I'm a dead beat CEO who wants everyone else to pay for my plans,

as an equal partner I'll supply the brains, you supply the cash to build my range up against yours?

 

Actually, that sounds like the day Rick Waggoner visited Bill Ford....

Ding ding ding we have a winner! "Thanks but no thanks Rick, go pound sand." - Bill Ford ;)

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Split the company up. Large cars and Jeep to Ford, trucks to Toyota. Liquidate everything else. The Chinese will buy it.

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I agree there should be more "under the hood" sharing going on. Engines, transmissions, etc... Kinda like what Ford and GM are going with the new trans. It saves money in development and standardizes things a bit in the process. I think we are going to see way more of that in the near future as government regs get stricter.

 

Edit: not necessarily with FCA, but more as a general automotive industry thing.

I think there's some standardization in parts and suppliers. Look carefully at a GM product and then a Ford, you see that they do share parts and some are pretty darn close. Other then the JV that's about as far as it goes. Mergers sound like the company proposing the merger just wants your money to stay afloat.

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FCA needs an Asian partner. It doesn't need any more coverage in North America, South America, or Europe, which is where GM and Ford is has large operations/investments.

 

FCA-Hyundai combination will be gangbusters but I doubt the Koreans are interested. Can you imagine the ego clash? It would be epic.

 

FCA-Mitsubishi combination will toss the Japanese a lifeboat but does very little for Sergio (no piggy bank to raid).

 

FCA-Suzuki combination makes a lot of sense but Suzuki is very committed to its strategy of holding on to Japan's kei car market and expanding in India. It doesn't really need the large car expertise from Chrysler.

 

FCA-Mazda combination is the enthusiasts' dream come true but Mazda doesn't offer enough volume and leverage for FCA.

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Fiat, Masarati and

 

FCA needs an Asian partner. It doesn't need any more coverage in North America, South America, or Europe, which is where GM and Ford is has large operations/investments.

 

Fiat already has a Chinese JV partner, GAC.

What they should be doing is using FCA funding to develop Chinese products and production for Fiat, Alpha Romero

and Maserati., use that to assist those brands to re emerge in Europe and North America. A bit different to the current

plan and more in keeping with achieving the aims Sergio has. Funny how Fiat wants to keep the actual funds close to its

own home room. A suspicious person might suspect that something shonky could go down to make that cash disappear.

Edited by jpd80

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