FCA Chairman: Make No Mistake - We're Still on the Prowl

Thursday night’s falling apart of the proposed Fiat Chrysler-Renault merger was a setback for FCA, but the automaker wants everyone to know it remains on the hunt for a willing partner. Essentially, nothing’s changed from the days when former CEO Sergio Marchionne made eyes at the likes of General Motors and Volkswagen, only to receive the cold shoulder.

Sure, it didn’t work out with the French, Chairman John Elkann wrote to FCA employees, but that doesn’t mean FCA won’t soon find a date for the dance.

The letter, obtained by Reuters, sees Elkann claiming the company withdrew its proposal to Renault to protect FCA employees and stakeholders, adding it took the discussions “as far as they can reasonably go.”

“The decision to engage in these discussions with Groupe Renault‎ was the right one and one we took after much preparation on many fronts,” the Agnelli family scion wrote.

Neither side in the abortive merger has said much about what specific issue or issues caused the talks to fall apart, but FCA’s comment about “political conditions in France” lends credence to rumors of hefty guarantees demanded by the French government. Those included a French headquarters for the combined entity, assurances for French workers, and a special dividend for Renault shareholders. Allegedly, the French government also wanted a representative on the board.

Not deterred by the experience, FCA remains on the hunt for someone to share platforms and development costs with.

“FCA, under Mike Manley’s leadership, is an outstanding business … with a clear strategy for a strong, independent future,” Elkann wrote. “We will continue to be open to opportunities of all kinds that offer the possibility to enhance and accelerate the delivery of that strategy and the creation of value.”

One future possibility is a strengthened partnership with France’s PSA Group, which was the subject of numerous rumors earlier this year.

[Image: Fiat Chrysler Automobiles]