Fiat Chrysler Not Planning Hostile Takeover of General Motors Because of Course They Can't
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.
Join the conversation
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Tassos ask me if I care.
- ToolGuy • Nice vehicle, reasonable price, good writeup. I like your ALL CAPS. 🙂"my mid-trim EX tester is saddled with dummy buttons for a function that’s not there"• If you press the Dummy button, does a narcissist show up spouting grandiose comments? Lol.
- MaintenanceCosts These are everywhere around here. I'm not sure the extra power over a CR-V hybrid is worth the fragile interior materials and the Kia dealership experience.
- MaintenanceCosts It's such a shame about the unusable ergonomics. I kind of like the looks of this Camaro and by all accounts it's the best-driving of the current generation of ponycars. A manual 2SS would be a really fun toy if only I could see out of it enough to drive safely.
- ToolGuy Gut feel: It won't sell all that well as a new vehicle, but will be wildly popular in the used market 12.5 years from now.(See FJ Cruiser)
Who the f*ck-all would want General Motors as a partner in anything? That's just pathetic...
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.