Fiat Chrysler Not Planning Hostile Takeover of General Motors Because of Course They Can't

Aaron Cole
by Aaron Cole

Fiat Chrysler Automobiles won’t attempt to takeover General Motors anytime soon, FCA chief Sergio Marchionne told investors Thursday according to Reuters.

Speaking following a shareholder meeting, Marchionne said that finding a partner for FCA wasn’t “life or death” for the automaker group. Reportedly, FCA will delay launching several of their cars — including the Alfa Romeo Giulia for six months — as the automaker shores up its $52 billion investment plan.

“We are not choking. We are in relatively decent shape,” Marchionne said.

The automaker will present a revised product launch calendar next month, according to the report. That may include plans for Alfa Romeo’s return to the U.S., including an SUV, and a more clear picture for languishing Maserati. The luxury brand’s return has stalled, in part, because of slowing sales in China.

One of the lone bright spots for FCA has been sales of Jeep-branded vehicles worldwide. Sales in the U.S. have steadily climbed for the SUV brand and have carried the rest of the automaker’s portfolio.

According to Reuters, adjusting Jeep’s sales targets for next year and increasing output could help buoy the brands as they prepare for a future without a significant merger with GM on the horizon.

“We have been publicly rebuffed, we have been rejected and you cannot force these things. I don’t want to,” Marchionne said, according to Reuters. “At the moment, we have no intention to do anything hostile.”

Of the Big Three, FCA’s finances seem to be the most tenuous. The automaker’s $8.5 billion net debt burden, weak Latin American sales and rapidly aging product platforms had the automaker publicly courting partners earlier this year.

Marchionne said that FCA could still partner with smaller automakers, but that spinning off any of its other brands was unlikely.

Analysts estimated that any sort of hostile takeover of GM could cost FCA $77 billion in stock.

Also: Marchionne continued with the creepy Mary Barra talk, noting via Reuters:

This year Marchionne sent an email to Mary Barra, his counterpart at GM, proposing a tie-up but was turned down.

“This is not an indiscriminate dating game. I’m not willing to go with anybody to get it done,” he said.


Aaron Cole
Aaron Cole

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  • DeadWeight DeadWeight on Dec 04, 2015

    Who the f*ck-all would want General Motors as a partner in anything? That's just pathetic...

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    • 28-Cars-Later 28-Cars-Later on Dec 04, 2015

      DW, China is where its at in the 21st Century. Kissinger and Nixon probably agreed to this course with Mao in 1972, I would very much not be surprised. GM has been there since the late 90s and has a best selling brand already in country. Dysfunctional as they may be, they are a target for partnership/alliance/buy-out for these assets alone.

  • Buickman Buickman on Dec 04, 2015

    Red Ink Rick, Board of Bystanders, subservient and compliant Mark LaNaive and sidekick Bent Over, Mr Ebonics and his wasted Billions, all parading as followup to the practice round Delphi...a Bankster Rinse thru BK and eventual reclaiming by Goldman et al. what a racket! it's expensive maintaining those Hampton HUDS. now the next chapter of Corruption & Ineptitude at The General, led by UnBarrable Mary, another inept soul seller.

  • Lorenzo I just noticed the 1954 Ford Customline V8 has the same exterior dimensions, but better legroom, shoulder room, hip room, a V8 engine, and a trunk lid. It sold, with Fordomatic, for $21,500, inflation adjusted.
  • Lorenzo They won't be sold just in Beverly Hills - there's a Nieman-Marcus in nearly every big city. When they're finally junked, the transfer case will be first to be salvaged, since it'll be unused.
  • Ltcmgm78 Just what we need to do: add more EVs that require a charging station! We own a Volt. We charge at home. We bought the Volt off-lease. We're retired and can do all our daily errands without burning any gasoline. For us this works, but we no longer have a work commute.
  • Michael S6 Given the choice between the Hornet R/T and the Alfa, I'd pick an Uber.
  • Michael S6 Nissan seems to be doing well at the low end of the market with their small cars and cuv. Competitiveness evaporates as you move up to larger size cars and suvs.
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