silvrsvt Posted April 20, 2015 Share Posted April 20, 2015 Oh boy http://www.telegraph.co.uk/finance/newsbysector/transport/general-motors/11547433/Fiats-boss-will-struggle-to-bring-GM-to-the-altar.html Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 20, 2015 Share Posted April 20, 2015 File photo of Sergio Marchionne eyeballing GM's cash pile: 2 Quote Link to comment Share on other sites More sharing options...
Fgts Posted April 20, 2015 Share Posted April 20, 2015 Oh boy http://www.telegraph.co.uk/finance/newsbysector/transport/general-motors/11547433/Fiats-boss-will-struggle-to-bring-GM-to-the-altar.html What's with this idiot to whore-out a car company that doesn't need any merger. If the books are good what gives? . Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted April 20, 2015 Share Posted April 20, 2015 What's with this idiot to whore-out a car company that doesn't need any merger. If the books are good what gives? . "Because reasons" - Sergio Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 20, 2015 Share Posted April 20, 2015 The books aren't good. The paragraph describing FCA as fragile is apt. Chrysler's margins in the US are not good--which is amazing given how many trucks and SUVs they sell. There doesn't appear to be any interest whatsoever in turning Fiat into a responsibly run operation. Thus, the interest in GM's cash pile----all that money buys time during which FCA can pretend that their gigantic issues do not exist. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted April 20, 2015 Share Posted April 20, 2015 You know what? Instead of an alliance why not go full backwards merger and restrengthen GM's global presence.. GM gets more brands and plants in US and Europe, Sergio walks away with billions... GM would be up near 30% market share in the US, what could go wrong with that.... tell me that's not a win win for the merged companies and everyone else.... Quote Link to comment Share on other sites More sharing options...
Pioneer Posted April 20, 2015 Share Posted April 20, 2015 Chrysler's margins in the US are not good--which is amazing given how many trucks and SUVs they sell. Have you seen the cheap 0 down leases and piles if cash on the hoods of their trucks? They are buying market share like the world is ending tomorrow. 1 Quote Link to comment Share on other sites More sharing options...
Fgts Posted April 20, 2015 Share Posted April 20, 2015 (edited) The books aren't good. The paragraph describing FCA as fragile is apt. Chrysler's margins in the US are not good--which is amazing given how many trucks and SUVs they sell. Thus, the interest in GM's cash pile----all that money buys time during which FCA can pretend that their gigantic issues do not exist. Cash pile means nothing if the bigger company (GM) would just kill off/sale the other FCA brands and keep Jeep because that's exactly what will happen . As as said if FCA U.S. isn't losing money what's with this ego trip? . Margins and red ink are 2 different things. Edit: Read more of it, seems like SM wants the company to go to China but don't have the capital. 2 things could happen: 1 GM can offer a platform(s),technology and maybe a factory for use in China for FCA . 2 SM sells the whole thing and get a good payoff. IMO they can make a lot of progress in China and here with the Dart/200 platform but eventually the platform will have to get replaced and they have to pay down the European op debts. Edited April 20, 2015 by Fgts Quote Link to comment Share on other sites More sharing options...
Anthony Posted April 20, 2015 Share Posted April 20, 2015 Beginning to understand why I bought a Focus instead of a Dart. Does GM have any cash pile? I see no synergy where this would make sense without losing a lot of cars and jobs. Quote Link to comment Share on other sites More sharing options...
grbeck Posted April 20, 2015 Share Posted April 20, 2015 The books aren't good. The paragraph describing FCA as fragile is apt. Chrysler's margins in the US are not good--which is amazing given how many trucks and SUVs they sell. There doesn't appear to be any interest whatsoever in turning Fiat into a responsibly run operation. Thus, the interest in GM's cash pile----all that money buys time during which FCA can pretend that their gigantic issues do not exist. Does GM even have a cash pile? I find it hard to believe that GM is sitting on a large amount of cash. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 20, 2015 Share Posted April 20, 2015 Does GM have a cash pile? Yep: $29.2B http://www.marketwatch.com/investing/stock/GM/financials/balance-sheet Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 20, 2015 Share Posted April 20, 2015 Cash pile means nothing if the bigger company (GM) would just kill off/sale the other FCA brands and keep Jeep because that's exactly what will happen No, that's not what would happen. The only merger that Sergio would agree to would be one where his people would have a veto over such actions. And while I have criticized GM repeatedly on this forum, I don't think there's anyone at GM stupid enough to go along with this. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 20, 2015 Share Posted April 20, 2015 Make no mistake, this is 100% about using GM's cash to shield Fiat (and Fiat alone) from reality. Sergio may talk internationally, he may have his headquarters in London, but bottom line: This is all about an Italian trying to protect an Italian auto manufacturer that has been resisting change for four decades now. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted April 20, 2015 Share Posted April 20, 2015 Beginning to understand why I bought a Focus instead of a Dart. Care to elaborate? Quote Link to comment Share on other sites More sharing options...
Anthony Posted April 20, 2015 Share Posted April 20, 2015 Care to elaborate? I was considering a number of smaller cars and I ended up with the Focus. Quote Link to comment Share on other sites More sharing options...
OHV 16V Posted April 20, 2015 Share Posted April 20, 2015 (edited) Let's not forget as well that Sergio has went ahead with the practice of raising invoice pricing on Ram, Dodge, Chrysler and Jeep products without increasing the MSRPs on the window stickers accordingly, ergo effectively "pinching" his dealership network's margins, all in an attempt to make up for the company's lousy ATPs. Further proof that RJ's theory of "protecting the home brand" is going on here: The above-mentioned tactic will not be applied to FIAT or Alfa Romeo vehicles. The whole thing is a shame. I wish FIAT and all involved would magically "go away" and leave Chrysler alone to do its thing, so much promise there in my opinion. Edited April 20, 2015 by OHV 16V Quote Link to comment Share on other sites More sharing options...
630land Posted April 21, 2015 Share Posted April 21, 2015 (edited) I agree, GM should say 'get lost'. Wait til they are desparate enough to sell Jeep separately, and not get the whole company's worms. I predict Sergio will say 'Oh well, I have to drop the Dodge brand' to save $$'. Edited April 21, 2015 by 630land Quote Link to comment Share on other sites More sharing options...
bzcat Posted April 21, 2015 Share Posted April 21, 2015 (edited) No, that's not what would happen. The only merger that Sergio would agree to would be one where his people would have a veto over such actions. And while I have criticized GM repeatedly on this forum, I don't think there's anyone at GM stupid enough to go along with this. "And while I have criticized GM repeatedly on this forum, I don't think there's anyone at GM stupid enough to go along with this again." Added emphasis at the end... Remember, GM paid Fiat $2 billion dollars in 2005 unwind the GM-Fiat pre-merger. GM got nothing for its $2 billion while Fiat got to use GM's Epsilon (Fiat Croma and the stillborn mid and large size Alfa) and Gamma (Fiat Punto, Alfa Mito) platforms. http://www.autonews.com/article/20080914/OEM/309149839/awkward-gm-fiat-alliance-had-benefits-but-was-doomed-to-fail Edited April 21, 2015 by bzcat Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 21, 2015 Share Posted April 21, 2015 Yeah. There may have been stranger agreements in the auto industry than that one, but I cannot think of one at the moment. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted April 22, 2015 Share Posted April 22, 2015 This is such a bad idea it may actually work, I'm thinking reverse logic....... Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.