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Sergio Marchionne, the former head of Fiat Chrysler Automobiles who is credited for saving Chrysler and Fiat has passed away today at age 66 due to complications from shoulder surgery. “Unfortunately, what we feared has come to pass. Sergio Marchionne, man and friend, is gone,” said FCA Chairman John Elkann in a statement this morning. Marchionne came into the spotlight back in 2004 when he was named CEO of Fiat. He was Fiat's fifth CEO in less than two years and had a big task ahead of him. The Italian automaker was struggling as it had lost more than 6 billion Euros (about $7 billion) the year before. Marchionne was somehow able to pull Fiat from the brink by closing various plants, laying off thousand of workers, getting a $2 billion payment from General Motors to settle past contractual obligation, and expanding the company's car lineup. It worked as Fiat would become profitable a year later. In 2009, Marchionne led Fiat to acquire a 20 percent stake into beleaguered Chrysler following the 2008 financial crisis. Only a few years later, Fiat would buy up the rest of Chrysler and become Fiat Chrysler Automobiles. He would oversee the reinvention of Alfa Romeo, expand Jeep into other markets, and spin off Ferrari into its own separate company. Other parts of FCA haven't quite worked out, most notably Chrysler and Dodge which has seen both of their lineups shrink. Marchionne was not like your normal CEO. He was known for wearing black pullover sweaters and jeans which made him stand out at various events. Marchionne was also known for being direct and speaking his mind (for better or worse). Next April, Marchionne was planning to step down as CEO and announce his replacement. But health complications over the weekend caused FCA to decide his successor. That person would be Mike Manley, head of Jeep and Ram Trucks. Source: Automotive News (Subscription Required), Bloomberg, Fiat Chrysler Automobiles View full article
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Sergio Marchionne, the former head of Fiat Chrysler Automobiles who is credited for saving Chrysler and Fiat has passed away today at age 66 due to complications from shoulder surgery. “Unfortunately, what we feared has come to pass. Sergio Marchionne, man and friend, is gone,” said FCA Chairman John Elkann in a statement this morning. Marchionne came into the spotlight back in 2004 when he was named CEO of Fiat. He was Fiat's fifth CEO in less than two years and had a big task ahead of him. The Italian automaker was struggling as it had lost more than 6 billion Euros (about $7 billion) the year before. Marchionne was somehow able to pull Fiat from the brink by closing various plants, laying off thousand of workers, getting a $2 billion payment from General Motors to settle past contractual obligation, and expanding the company's car lineup. It worked as Fiat would become profitable a year later. In 2009, Marchionne led Fiat to acquire a 20 percent stake into beleaguered Chrysler following the 2008 financial crisis. Only a few years later, Fiat would buy up the rest of Chrysler and become Fiat Chrysler Automobiles. He would oversee the reinvention of Alfa Romeo, expand Jeep into other markets, and spin off Ferrari into its own separate company. Other parts of FCA haven't quite worked out, most notably Chrysler and Dodge which has seen both of their lineups shrink. Marchionne was not like your normal CEO. He was known for wearing black pullover sweaters and jeans which made him stand out at various events. Marchionne was also known for being direct and speaking his mind (for better or worse). Next April, Marchionne was planning to step down as CEO and announce his replacement. But health complications over the weekend caused FCA to decide his successor. That person would be Mike Manley, head of Jeep and Ram Trucks. Source: Automotive News (Subscription Required), Bloomberg, Fiat Chrysler Automobiles -
*UPDATE* Automotive News Europe is reporting that Jeep and Ram Trucks head Mike Manley will become Marchionne's successor as FCA CEO. We'll have more in an upcoming news story. The era of Sergio Marchionne leading Fiat Chrysler Automobiles and Ferrari is seemingly coming to abrupt end. Last night, both Bloomberg and Reuters reported that Marchionne would not return as CEO of the two companies due to complications from surgery. Earlier this month, FCA said Marchionne would be going on medical leave for shoulder surgery. Sources tell Reuters that since the operation, the CEO has been experiencing “massive” and serious complications. The boards of FCA and Ferrari are meeting today to decide possible successors. According to one source, the new CEO of Ferrari is expected to be Louis Carey Camilleri - currently a board member and former chairman of Philip Morris International. At FCA, there are three people up for consideration - CFO Richard Palmer, Europe chief Alfredo Altavilla, and head of the Jeep and Ram Mike Manley. Spokespeople for both FCA and Ferrari declined to comment. In addition to his roles at Ferrari and FCA, Marchionne is the Chairman of CNH Industrial, an agricultural and construction equipment manufacturer. According to sources, the board is expected to meet today to discuss a succession plan. Source: Automotive News (Subscription Required), Bloomberg, Reuters View full article -
Rumorpile: FCA, Ferrari Boards To Discuss Marchionne Successors
William Maley posted an article in Fiat
*UPDATE* Automotive News Europe is reporting that Jeep and Ram Trucks head Mike Manley will become Marchionne's successor as FCA CEO. We'll have more in an upcoming news story. The era of Sergio Marchionne leading Fiat Chrysler Automobiles and Ferrari is seemingly coming to abrupt end. Last night, both Bloomberg and Reuters reported that Marchionne would not return as CEO of the two companies due to complications from surgery. Earlier this month, FCA said Marchionne would be going on medical leave for shoulder surgery. Sources tell Reuters that since the operation, the CEO has been experiencing “massive” and serious complications. The boards of FCA and Ferrari are meeting today to decide possible successors. According to one source, the new CEO of Ferrari is expected to be Louis Carey Camilleri - currently a board member and former chairman of Philip Morris International. At FCA, there are three people up for consideration - CFO Richard Palmer, Europe chief Alfredo Altavilla, and head of the Jeep and Ram Mike Manley. Spokespeople for both FCA and Ferrari declined to comment. In addition to his roles at Ferrari and FCA, Marchionne is the Chairman of CNH Industrial, an agricultural and construction equipment manufacturer. According to sources, the board is expected to meet today to discuss a succession plan. Source: Automotive News (Subscription Required), Bloomberg, Reuters -
For the past few years, Fiat Chrysler Automobiles CEO Sergio Marchionne holds a conference with journalists and analysts at the Detroit Auto Show, taking various questions. According to Motor Trend, Marchionne revealed that more crossovers are on the way for Alfa Romeo, Chrysler, and Ferrari. Alfa's Three-Row Crossover: Sergio Marchionne confirmed that Alfa Romeo is working on a larger SUV to sit above the Stelvio. He says this model is very important for the brand. As we reported towards the end of December, the model would use a stretched version of the Stelvio's platform and possibly feature a mild-hybrid powertrain. Chrysler's Pacifica-based crossover: It seems the platform that underpins the Pacifica will be used for a long-promised crossover. The model was in the previous five-year plan for FCA, but was pushed back. The model will be in the next five-year plan (expected to be shown sometime later this year) and could go into production within the next 18 months. Ferrari SUV: Progress on Ferrari's upcoming SUV is moving quite quickly as Marchionne said it would be ready by the end of 2019 or early 2020. At the moment, the Italian automaker has mock-up bodies of the SUV, but nothing driveable. “I have seen the car when I was in Europe. It’s not finished. It’s going to be Ferrari. It will drive like a Ferrari or I’ll be taken to the shed. But it looks good,” said Marchionne. Other bits from Marchionne: When asked about a performance electric vehicle, Marchionne said, “Ferrari has looked at this forever, and if there is an electric supercar to be built, Ferrari will do it,” FCA hasn't "found an economic way to get this done” when asked if there was the chance of a midsize Ram pickup. Wrangler Pickup is expected to debut towards the end of 2019 Marchionne is planning to retire as FCA CEO next year The most pressing question asked during the session? Where does he buy his sweaters? Answer: Online. Source: Motor Trend View full article
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Sergio Marchionne: You Get a Crossover and You Get A Crossover
William Maley posted an article in Chrysler
For the past few years, Fiat Chrysler Automobiles CEO Sergio Marchionne holds a conference with journalists and analysts at the Detroit Auto Show, taking various questions. According to Motor Trend, Marchionne revealed that more crossovers are on the way for Alfa Romeo, Chrysler, and Ferrari. Alfa's Three-Row Crossover: Sergio Marchionne confirmed that Alfa Romeo is working on a larger SUV to sit above the Stelvio. He says this model is very important for the brand. As we reported towards the end of December, the model would use a stretched version of the Stelvio's platform and possibly feature a mild-hybrid powertrain. Chrysler's Pacifica-based crossover: It seems the platform that underpins the Pacifica will be used for a long-promised crossover. The model was in the previous five-year plan for FCA, but was pushed back. The model will be in the next five-year plan (expected to be shown sometime later this year) and could go into production within the next 18 months. Ferrari SUV: Progress on Ferrari's upcoming SUV is moving quite quickly as Marchionne said it would be ready by the end of 2019 or early 2020. At the moment, the Italian automaker has mock-up bodies of the SUV, but nothing driveable. “I have seen the car when I was in Europe. It’s not finished. It’s going to be Ferrari. It will drive like a Ferrari or I’ll be taken to the shed. But it looks good,” said Marchionne. Other bits from Marchionne: When asked about a performance electric vehicle, Marchionne said, “Ferrari has looked at this forever, and if there is an electric supercar to be built, Ferrari will do it,” FCA hasn't "found an economic way to get this done” when asked if there was the chance of a midsize Ram pickup. Wrangler Pickup is expected to debut towards the end of 2019 Marchionne is planning to retire as FCA CEO next year The most pressing question asked during the session? Where does he buy his sweaters? Answer: Online. Source: Motor Trend -
Fiat Chrysler Automobiles' CEO Sergio Marchionne has a track record of saying things that make jaws drop everywhere. Case in point comes to us from The Detroit Free Press. During the company's first-quarter earnings call, Morgan Stanley analyst Adam Jonas asked Marchionne if there was a possibility of spinning off Jeep and/or Ram Trucks into a separate, standalone company. "Yes," said Marchionne. The Free Press notes that Jonas dropped this subject and moved on to another question. It needs to be noted that this isn't the first time that Jonas has brought this idea up. Back in January, Jonas estimated Jeep's value on a standalone basis would be $22 billion. Ram Trucks isn't far behind with an estimated value of $11.2 billion. There is also precedent for this idea. Marchionne has a history of spinning off brands while keeping them under the FCA corporate umbrella. Last year, Ferrari was spun off to its own standalone company and now trades on the New York Stock Exchange. It currently generates more than $3.4 billion in annual revenue and close to $435 million in net income. Marchionne serves as the chairman and CEO of the company. But if such a move was to happen, it would take a fair amount of time for this changeover to take place. Source: Detroit Free Press View full article
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Fiat Chrysler Automobiles' CEO Sergio Marchionne has a track record of saying things that make jaws drop everywhere. Case in point comes to us from The Detroit Free Press. During the company's first-quarter earnings call, Morgan Stanley analyst Adam Jonas asked Marchionne if there was a possibility of spinning off Jeep and/or Ram Trucks into a separate, standalone company. "Yes," said Marchionne. The Free Press notes that Jonas dropped this subject and moved on to another question. It needs to be noted that this isn't the first time that Jonas has brought this idea up. Back in January, Jonas estimated Jeep's value on a standalone basis would be $22 billion. Ram Trucks isn't far behind with an estimated value of $11.2 billion. There is also precedent for this idea. Marchionne has a history of spinning off brands while keeping them under the FCA corporate umbrella. Last year, Ferrari was spun off to its own standalone company and now trades on the New York Stock Exchange. It currently generates more than $3.4 billion in annual revenue and close to $435 million in net income. Marchionne serves as the chairman and CEO of the company. But if such a move was to happen, it would take a fair amount of time for this changeover to take place. Source: Detroit Free Press -
Sergio Marchionne is the biggest critic of electric vehicles in the automotive industry. But he seems to be changing his tune (to a point). "I’m not as convinced as some others are about the fact that electrification is the solution for all of man’s ills. We need to experiment as we are doing now with connected cars and mobility as electrification is one of the potential answers," said Marchionne to Bloomberg. Marchionne said the company is contemplating adding full electric vehicles to their lineup including a small city car for Europe and a version of the upcoming Maserati Alfieri coupe. The latter model could be positioned as a rival to Tesla. "I’ve always thought the economic model that supports Tesla is something that Fiat Chrysler could replicate as we have the brand and the vehicles to do it. I think that to use one of our potential cars as an experiment in this area is interesting," said Marchionne. Marchionne also said the company would launch more hybrid vehicles down the road. Source: Bloomberg -
Marchionne Considers An Electric Vehicle for Maserati :Comments
William Maley posted a topic in Fiat
Sergio Marchionne is the biggest critic of electric vehicles in the automotive industry. But he seems to be changing his tune (to a point). "I’m not as convinced as some others are about the fact that electrification is the solution for all of man’s ills. We need to experiment as we are doing now with connected cars and mobility as electrification is one of the potential answers," said Marchionne to Bloomberg. Marchionne said the company is contemplating adding full electric vehicles to their lineup including a small city car for Europe and a version of the upcoming Maserati Alfieri coupe. The latter model could be positioned as a rival to Tesla. "I’ve always thought the economic model that supports Tesla is something that Fiat Chrysler could replicate as we have the brand and the vehicles to do it. I think that to use one of our potential cars as an experiment in this area is interesting," said Marchionne. Marchionne also said the company would launch more hybrid vehicles down the road. Source: Bloomberg View full article -
For better or worse, Fiat Chrysler Automobiles CEO Sergio Marchionne will say whatever comes to his mind. Case in point, saying the next-generation Chrysler 300 could go front-wheel drive. "This plant and this architecture is capable of making the 300 successor, the front-wheel, all-wheel drive successor," Marchionne told reporters at FCA's Windsor plant - home to Pacifica production. The architecture in question what underpins the new Pacifica minivan. Now when asked if the 300 would switch from a rear-wheel to a front-wheel platform, Marchionne said, "It's capable. It's not a commitment." The current Chrysler 300 and its stablemates, the Dodge Charger and Challenger use the LX platform that uses suspension bits from older Mercedes-Benz models - the W211 E-Class and W220 S-Class. This move makes some sense as Chrysler is slowly being positioned as a competitor to the likes of Honda, Chevrolet, and Ford. Plus, it would give Dodge some breathing room to become the performance brand by having a rear-wheel drive platform for themselves. But who can be sure at the moment since plans at FCA seem to be in a constant state of change. Source: Reuters Pic Credit: William Maley for Cheers & Gears View full article
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Marchionne Floats Out the Idea Of Next 300 Being Front-Wheel Drive
William Maley posted an article in Chrysler
For better or worse, Fiat Chrysler Automobiles CEO Sergio Marchionne will say whatever comes to his mind. Case in point, saying the next-generation Chrysler 300 could go front-wheel drive. "This plant and this architecture is capable of making the 300 successor, the front-wheel, all-wheel drive successor," Marchionne told reporters at FCA's Windsor plant - home to Pacifica production. The architecture in question what underpins the new Pacifica minivan. Now when asked if the 300 would switch from a rear-wheel to a front-wheel platform, Marchionne said, "It's capable. It's not a commitment." The current Chrysler 300 and its stablemates, the Dodge Charger and Challenger use the LX platform that uses suspension bits from older Mercedes-Benz models - the W211 E-Class and W220 S-Class. This move makes some sense as Chrysler is slowly being positioned as a competitor to the likes of Honda, Chevrolet, and Ford. Plus, it would give Dodge some breathing room to become the performance brand by having a rear-wheel drive platform for themselves. But who can be sure at the moment since plans at FCA seem to be in a constant state of change. Source: Reuters Pic Credit: William Maley for Cheers & Gears -
Ferrari announced today that the current CEO Amedeo Felisa will step down and Sergio Marchionne will become the new CEO. The changes are effective immediately. The change didn't come as a surprise to most people. Sources tell Reuters that Marchionne being named CEO doesn't change much as he has been in charge since former Chairman Luca Di Montezemolo quit in September 2014. Felisa has been with Ferrari for 26 years holding various roles including overseeing product development and the general manager of the brand. He was named CEO in 2008. Felisa will still be part of Ferrari's board of directors. It is unknown what this change will bring to the Italian sports car maker. But considering some of Marchionne's previous comments, it wouldn't be surprising if production is slightly increased and an entry-level sports car comes out. Source: Associated Press, Reuters, Ferrari Press Release is on Page 2 Ferrari Announces CEO Succession Maranello (Italy), 2 May 2016 – Ferrari N.V. (“Ferrari” or “Company”) (NYSE/MTA: RACE) announces the retirement of its Chief Executive Officer, Mr. Amedeo Felisa, after 26 years of dedicated service. Mr. Sergio Marchionne will assume those responsibilities while retaining his current role as Chairman of the Company. Mr. Felisa will continue to serve on the Board of Directors of Ferrari with a specific mandate as technical advisor to the Company. Sergio Marchionne had this to say: “I have known Amedeo for more than a decade and I have had the opportunity to work with him closely for the last two years. He is beyond any doubt one of the best automotive engineers in the world. During the last 26 years, he has worked tirelessly to fuel and guide Ferrari’s technical development, producing an array of cars which have set the standard for both performance and styling.” The Board of Directors wants to officially express its gratitude to Amedeo for his contributions and is delighted to be able to count on his services as technical advisor to the leadership team going forward. These executive changes are effective immediately. -
Ferrari announced today that the current CEO Amedeo Felisa will step down and Sergio Marchionne will become the new CEO. The changes are effective immediately. The change didn't come as a surprise to most people. Sources tell Reuters that Marchionne being named CEO doesn't change much as he has been in charge since former Chairman Luca Di Montezemolo quit in September 2014. Felisa has been with Ferrari for 26 years holding various roles including overseeing product development and the general manager of the brand. He was named CEO in 2008. Felisa will still be part of Ferrari's board of directors. It is unknown what this change will bring to the Italian sports car maker. But considering some of Marchionne's previous comments, it wouldn't be surprising if production is slightly increased and an entry-level sports car comes out. Source: Associated Press, Reuters, Ferrari Press Release is on Page 2 Ferrari Announces CEO Succession Maranello (Italy), 2 May 2016 – Ferrari N.V. (“Ferrari” or “Company”) (NYSE/MTA: RACE) announces the retirement of its Chief Executive Officer, Mr. Amedeo Felisa, after 26 years of dedicated service. Mr. Sergio Marchionne will assume those responsibilities while retaining his current role as Chairman of the Company. Mr. Felisa will continue to serve on the Board of Directors of Ferrari with a specific mandate as technical advisor to the Company. Sergio Marchionne had this to say: “I have known Amedeo for more than a decade and I have had the opportunity to work with him closely for the last two years. He is beyond any doubt one of the best automotive engineers in the world. During the last 26 years, he has worked tirelessly to fuel and guide Ferrari’s technical development, producing an array of cars which have set the standard for both performance and styling.” The Board of Directors wants to officially express its gratitude to Amedeo for his contributions and is delighted to be able to count on his services as technical advisor to the leadership team going forward. These executive changes are effective immediately. View full article
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Fiat Chrysler Automobile's CEO Sergio Marchionne is someone who speaks his mind - for better or worse. Speaking with Automotive News Europe, Marchionne expressed his skepticism on the recently unveiled Tesla Model 3, specifically on how they can make a profit. "I'm am not surprised by the high number of reservations but you have then to build and deliver them and also be profitable," Marchionne said. The Model 3 is Tesla entry into the mass-market EV segment with a $35,000 pricetag. At the moment, reservations for the new model are nearing 400,000. Marchionne doesn't see how Tesla could make money on it. But Marchionne went on to say if Tesla's Elon Musk "can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair and get it to the market within 12 months." Considering this is the same person who railed against EVs for years, it is a bit of a shock. Asked if he thinks the company is arriving late to the EV party, Marchionne said: “better late than sorry.” Source: Automotive News Europe (Subscription Required) View full article
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Fiat Chrysler Automobile's CEO Sergio Marchionne is someone who speaks his mind - for better or worse. Speaking with Automotive News Europe, Marchionne expressed his skepticism on the recently unveiled Tesla Model 3, specifically on how they can make a profit. "I'm am not surprised by the high number of reservations but you have then to build and deliver them and also be profitable," Marchionne said. The Model 3 is Tesla entry into the mass-market EV segment with a $35,000 pricetag. At the moment, reservations for the new model are nearing 400,000. Marchionne doesn't see how Tesla could make money on it. But Marchionne went on to say if Tesla's Elon Musk "can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair and get it to the market within 12 months." Considering this is the same person who railed against EVs for years, it is a bit of a shock. Asked if he thinks the company is arriving late to the EV party, Marchionne said: “better late than sorry.” Source: Automotive News Europe (Subscription Required) -
With the midsize truck market on the rebound, FCA is considering whether or not to do a midsize for Ram. “We’re looking into it. I have a keen interest in getting it done. The big question is whether it should be body on frame,” said Marchionne to reporters at the Geneva Motor Show. Previously, Ram was considering doing a midsize truck on a unibody platform. But this idea was tossed out due to problems with getting decent fuel economy and pricing the model at an affordable point while still making a profit. Marchionne says the biggest hurdle for a Ram midsize truck is trying to make a business case for it. When Marchionne looks at GM's midsize trucks - Chevrolet Colorado and GMC Canyon -, he assumes the profit margins are less than the full-size trucks due to pricing. Still, Marchionne believes there is a place for a midsize truck. “I think it’s a good place to be. Ram needs to expand its lineup.” Source: Motor Trend -
With the midsize truck market on the rebound, FCA is considering whether or not to do a midsize for Ram. “We’re looking into it. I have a keen interest in getting it done. The big question is whether it should be body on frame,” said Marchionne to reporters at the Geneva Motor Show. Previously, Ram was considering doing a midsize truck on a unibody platform. But this idea was tossed out due to problems with getting decent fuel economy and pricing the model at an affordable point while still making a profit. Marchionne says the biggest hurdle for a Ram midsize truck is trying to make a business case for it. When Marchionne looks at GM's midsize trucks - Chevrolet Colorado and GMC Canyon -, he assumes the profit margins are less than the full-size trucks due to pricing. Still, Marchionne believes there is a place for a midsize truck. “I think it’s a good place to be. Ram needs to expand its lineup.” Source: Motor Trend View full article
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Alfa Romeo Delayed Giulia To Make Sure It Was 'Perfect'
William Maley posted an article in Alfa Romeo
We could count on both hands the number of stories we have written about the Alfa Romeo Giulia being delayed for one reason or another. But according to FCA CEO Sergio Marchionne, the reason for all of those various delays is to make sure it would be a true rival to models such as the BMW 3-Series. "The project was technically immature. We will start only when we are on par with the Germans, otherwise it is not worth the effort," Marchionne told Automotive News. We're not sure how much of this comment we can take as seriously considering the Giulia was supposed to originally come out in 2013. Let us look at the list of delays, Issues with Manufacturing and Styling of the vehicle Engines suited for the vehicle not being ready Changing from a front-wheel drive to a rear-drive platform Problems with getting NVH to an acceptable level Failing to pass internal crash tests (though Alfa Romeo vehemently denies this) Alfa Romeo says that orders for the Giulia will open in April. The U.S. will see Giulia arrive this fall with the high-performance Quadrifoglio, followed by a turbocharged 2.0L four-cylinder towards the end of the year. We'll believe it when we see it. Source: Automotive News (Subscription Required) -
We could count on both hands the number of stories we have written about the Alfa Romeo Giulia being delayed for one reason or another. But according to FCA CEO Sergio Marchionne, the reason for all of those various delays is to make sure it would be a true rival to models such as the BMW 3-Series. "The project was technically immature. We will start only when we are on par with the Germans, otherwise it is not worth the effort," Marchionne told Automotive News. We're not sure how much of this comment we can take as seriously considering the Giulia was supposed to originally come out in 2013. Let us look at the list of delays, Issues with Manufacturing and Styling of the vehicle Engines suited for the vehicle not being ready Changing from a front-wheel drive to a rear-drive platform Problems with getting NVH to an acceptable level Failing to pass internal crash tests (though Alfa Romeo vehemently denies this) Alfa Romeo says that orders for the Giulia will open in April. The U.S. will see Giulia arrive this fall with the high-performance Quadrifoglio, followed by a turbocharged 2.0L four-cylinder towards the end of the year. We'll believe it when we see it. Source: Automotive News (Subscription Required) View full article
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FCA CEO Sergio Marchionne is giving it a rest when it comes to merger talk. Speaking with Bloomberg, Marchionne says he will focus on growing FCA through 2018. After 2018, Marchionne could retire from the company. Last year, Marchionne campaigned publicly for a merger of FCA and General Motors. GM's board looked at his proposal in the summer and rejected it. After this, Marchionne backtracked somewhat, saying the merger could generate $30 billion a year in cash. But now, Marchionne says any chances of a possible GM merge are done. “I met Mary Barra less than a month ago in Washington. I don’t think I will have another coffee with her. It won’t happen again in the future.” Of course, the talk of merging with GM must have brought some other companies out of the woodwork? Marchionne explained that he did get proposals, but were deemed not very attractive. He still believes a big merger is possible, but "it will be someone else's duty." Now with the merger stuff mostly out of his system, Marchionne will focus on finishing the current five-year plan for the company. His overall goal is to increase global deliveries to seven million units a year by 2018. To achieve this, FCA will invest around $52 billion for new products. Source: Bloomberg -
FCA CEO Sergio Marchionne is giving it a rest when it comes to merger talk. Speaking with Bloomberg, Marchionne says he will focus on growing FCA through 2018. After 2018, Marchionne could retire from the company. Last year, Marchionne campaigned publicly for a merger of FCA and General Motors. GM's board looked at his proposal in the summer and rejected it. After this, Marchionne backtracked somewhat, saying the merger could generate $30 billion a year in cash. But now, Marchionne says any chances of a possible GM merge are done. “I met Mary Barra less than a month ago in Washington. I don’t think I will have another coffee with her. It won’t happen again in the future.” Of course, the talk of merging with GM must have brought some other companies out of the woodwork? Marchionne explained that he did get proposals, but were deemed not very attractive. He still believes a big merger is possible, but "it will be someone else's duty." Now with the merger stuff mostly out of his system, Marchionne will focus on finishing the current five-year plan for the company. His overall goal is to increase global deliveries to seven million units a year by 2018. To achieve this, FCA will invest around $52 billion for new products. Source: Bloomberg View full article
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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
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Marchionne Tries Another Way To Get GM, Looks To Alternatives
William Maley posted an article in Fiat
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 -
Sergio Marchionne is planning on stepping down as head of Fiat Chrysler Automobiles in 2018. But before he says good-bye, he wants to do one more big deal to help plug up holes in FCA and expand into other markets. Reuters reports that Marchionne has been putting out feelers for the past year to try and jumpstart consolidation in the industry to help share costs and bring out new technologies. But an alliance would help FCA as they have one the largest piles of debt in the industry, along with a number of other problems such as an over-reliance on a North American market and missing a good amount of the Asian marketplace. "The U.S. is where FCA is focusing now. Marchionne is doing a lot of work on his last deal and something will happen before 2018." said a source to Reuters. Several sources say Marchionne and the Agnelli family - the founders of Fiat - have their eyes on General Motors as they have a strong presence in both the U.S. and Asia. Also, GM wants to get back on the right track in Europe after the mess with PSA Peugeot Citroen went no where. But a source at a U.S. bank says GM isn't interested. This isn't the first time that FCA has put feelers out. Last year, there were reports of FCA speaking with both PSA Peugeot Citroen and Volkswagen. These reports were denied. Source: Reuters
