By on January 4, 2016

Sergio Marchionne. Photo courtesy Toledo Blade.

Fiat Chrysler Automobiles chief Sergio Marchionne told Bloomberg on Monday that his company likely wouldn’t merge with another automaker before his tenure is up in 2018.

The chief executive publicly courted General Motors in 2015 to merge two of the Big Three. GM CEO Mary Barra publicly refuted that partnership, and Marchionne seems to have gotten the hint.

“I met Mary Barra less than a month ago in Washington,” Marchionne told Bloomberg. “I don’t think I will have another coffee with her. It won’t happen again in the future.”

Marchionne said any merger would have to be done after he leaves — in 2018.

Until then, the automaker plans on hitting its same ambitious sales targets, Marchionne told Bloomberg, including 7 million sales by 2018 — 2 million more than many estimate the carmaker will actually sell.

According to the report, Marchionne said he shrugged offers from other automakers that weren’t as promising as a Fiat-GM alliance, but we’re not here to talk about the past anymore, you guys.

Instead, Marchionne and FCA will go at it alone and continue its ambitious $52 billion investment plan that started by spinning off Ferrari. Sales of FCA shares dropped sharply Monday as Ferrari began trading on its own, separate from FCA.

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22 Comments on “Fiat Merger Won’t Happen Under Marchionne’s Watch...”


  • avatar
    bball40dtw

    They’re gonna sell like 2 million Alfas. Duh.

  • avatar
    DeadWeight

    “I met Mary Barra less than a month ago in Washington,” Marchionne told Bloomberg. “I don’t think I will have another coffee with her. It won’t happen again in the future.”

    Chillax..

    ..Mary Barra is busy rearranging her own deck chairs on the U.S.S. Guangzhou Motors.

    • 0 avatar
      bball40dtw

      She’s still in a better spot than Sergio.

      • 0 avatar
        DeadWeight

        Time will tell.

        SUVs & Pickups are essentially the only profitable vehicles at GM, and they’re really ramping up the incentives on those lately.

        A tsunami of low-mileage, 2 to 3 year old, off-lease, minty fresh vehicles is about to wash upon the shores for at least 3-4 years.

        I’ve seen this play so many times before.

        A disturbance in the sales pace space due to economic conditions will have an outsized effect on the entire auto sales rate at this juncture.

        • 0 avatar
          bball40dtw

          “SUVs & Pickups are essentially the only profitable vehicles at GM”

          I don’t know about GM, but since that old tired statement is false when it comes to Ford, so I’d bet that it’s false when it comes to GM.

          • 0 avatar
            DeadWeight

            I didn’t say 88% of Ford’s global net profit is derived from F Series pickup truck sales (but I’d bet it’s in excess of 70% and that GM’s pickup truck sales net a similar share of global profits).

            The bottom line is that any combination of a) slowing pickup truck sales and/or b) increasing incentives on pickup trucks at GM and Ford is going to crush their profitability.

          • 0 avatar
            bball40dtw

            GM and Ford will be much better off than FCA if gas prices go up or if there is a slow down. They both have less debt, hybrid platforms with actual sales, small cars that sell, and aren’t dragging around a corpse.

            Ford will have 40% of it’s fleet available as a hybrid or EV by the end of the decade. They don’t have to rely on trucks profits the same way anymore. GM is doing similar things.

            (It’s not 70% in 2015 because trucks weren’t the most profitable product for Ford North America in 2015. Tres will tell you how much money Louisville Assembly is making Ford. Next year, I would expect the F-Series to be Ford’s most profitable product again.)

    • 0 avatar
      mason

      ““I don’t think I will have another coffee with her.”

      That must be gentleman’s code for “She’s a real biatch”

  • avatar
    matador

    Sergio, you’re an idiot. There are many ways to hug someone.

    You’re just not hugging Ms. Barra the correct way!

  • avatar
    ctowne

    “can you belive it??!!? she wanted MONEY! From ME! I just waltzed in and they GAVE me Chrysler. The insult! Can’t she tell who I am?”

    • 0 avatar
      Scoutdude

      “can you belive it??!!? she wanted MONEY! From ME! I just waltzed in and they PAID me to take Chrysler. The insult! Can’t she tell who I am?”

      There fixed it for you.

  • avatar
    Corollaman

    Just tody on

    Just today on TTAC we read that Chevy is offering big incentives to dealers to sell more sedans instead of the more popular CUV’s. More dollars on the hoods, nothing really changes, does it?

    • 0 avatar
      Lorenzo

      The people who keep making those decisions to do the same things over and over keep getting their paychecks, so from their vantage point, why mess with a winning formula?

  • avatar
    Speed3

    Both GM and FCA have significant weakness. If GM can nail its next gen compact, midsize, and large crossovers which they will release for each 4 brands, then they may do well after all.

    FCA’s debt levels, delay of fresh product mix, and reliance on fleet sales shows their vulnerability. Their reliability and quality still aren’t great. I don’t understand how Fiat Europe has done so badly still. Maybe with VW distracted by its emission scandal will other major European makes be able to turn their operations around quicker.

    I kind of do hope for a merger or FCA sells off some brand. Jaguar Land Rover has done really well under Mahindra. I bet another auto maker willing to shell out some capital could have done well with Alfa Romeo, Lancia, or even Dodge or Chrysler.

    And if we are talking about selling off the Crown Jewels, GM should just sell Cadillac. Somebody else willing to invest correctly could bring back that marquee to its former glory. GM really doesn’t have the money or know how to make it a true competitor to BMW/Mercedes/Lexus.

    • 0 avatar
      wmba

      JLR has done OK under Tata, not Mahindra, but the latter company is far more profitable.

    • 0 avatar
      LXbuilder

      Speed3, surely you kid? “Alfa Romeo, Lancia, or even Dodge or Chrysler.”
      ” I don’t understand how Fiat Europe has done so badly still.”

      When Chrysler was gifted to Fiat I couldn’t find one friend (a few “car guys” in there too)that even knew what a Lancia was, and no one I knew was lusty for an Alfa Romeo.
      While Dodge and Chrysler quality may not be where it should be, it is far better than Fiat. Try a little research on those numbers, nothing out there worst than a 500L.

  • avatar
    Jeff S

    I think that Sergio was turned down by a few other auto manufacturers. Sergio hasn’t found anyone who will pay him for taking them over. Maybe Sergio is losing his touch.

  • avatar
    PrincipalDan

    “I met Mary Barra less than a month ago in Washington,” Marchionne told Bloomberg. “I don’t think I will have another coffee with her. It won’t happen again in the future.”

    Playa done lost his game…

  • avatar
    Jeff S

    Recycled Fiats is not a very attractive offer for any auto manufacturer. Mary would rather pay for her own cappuccino.


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