Fiat News: Marchionne Tries Another Way To Get GM, Looks To Alternatives

[William Maley]

FCA CEO Sergio Marchionne is quite serious on this consolidation of the automotive industry. Last month, it was reported that Marchionne emailed General Motors CEO Mary Barra about a possible tie up and wanting to meet back in March. Barra rejected this idea outright. But this isn't stopping Marchionne.

 

The Wall Street Journal reports Marchionne is turning to activist investors to compel GM into this idea. There is prescient for this idea as earlier in the year, a group of investors approached GM to buy back $8 billion of their stock. Through negotiation, GM agreed to buy back $5 billion of stock.

 

The other prescient goes back to 2006 when Nissan CEO Carlos Ghosn teamed up with activist investor Kirk Kerkorian to have GM join the alliance with Nissan and Renault. After weeks of discussion, GM declined to join.

 

If this idea goes no where, Marchionne has a Plan B. Bloomberg has learned from sources that there is a fallback option where Marchionne could talk to other automakers. Such automakers include Volkswagen, Mazda, and PSA Peugeot-Citroen.

 

Source: The Wall Street Journal (Subscription Required), Bloomberg

View full article

[Cmicasa the Great]

far as I kno VW, Ford, and even PSA have already said they don't want to with FCA. Hell Carlos Ghosn said he was good going it without Sergio. As I said yesterday.. I wouldn't mind GM snagging Jeep, finally giving it the reliable drive line it needs and GM an established Off-Road vehicle WITHIN GMC.. but thats about it,.

[G. David Felt]

This is sad as it sounds like he is desperate to find a partner knowing FCA has limited time before Bankruptcy happens.

 

Gut tells me an ugly change will happen in the next 12-18 months with FCA.

[El Kabong]

Fiat is dragging him down like a boat anchor.

[smk4565]

This man loves sweaters.

[ocnblu]

Seems like he's turned into one.

[aaaantoine]

I know it's been a while, but didn't GM pay good money to NOT buy out Fiat about a decade ago?

[ocnblu]

I seem to remember something along those lines there...

[aurora97]

GM got rid of Oldsmobile, Pontiac, Saturn, Hummer, and Saab in the six years before filing bankruptcy.

 

Now FCA wants to merge with GM.  If ANY deal goes through, then how will the brands be positioned?

 

Chrysler = Oldsmobile?

Dodge = Pontiac?

Jeep = Hummer?

Fiat = Saturn?

Alfa Romeo = Saab?