Come Dance With Me: Fiat-Chrysler Makes Another Pitch for a Partner

Steph Willems
by Steph Willems

Fiat Chrysler Automobiles chairman John Elkann, like the company’s sweatered CEO, is making come-hither eyes in the hopes of luring a suitor.

FCA needs a partner to turn its lofty debt pile into capital, so Elkann wants other automakers to know just how thrilled he’d be if they helped FCA save $10 billion a year, he told shareholders of the investment company controlling FCA (via Bloomberg).

The problem, he lamented, is that other automakers are all wrapped up in trying to develop autonomous technology, often with outsider help. Like a wallflower with a heart of gold, FCA feels ignored despite having a lot to offer.

“You need two to tango, and most of our competitors are busy with the great opportunities that technological disruption has to offer,” Elkann wrote to the Exor S.p.A. shareholders.

What’s an Italian-American automaker to do?

Autonomous vehicles are sexy and alluring, but they’re not going to make up more than a niche market for years to come, Elkann insisted. Human-driven cars are where the money is today, so why not hop on board and flex some revenue-generating muscle (while eliminating a 5 billion euro debt in the process)?

“Boring old carmakers need to figure out how to make this profitable and guard against falling into the 1990 trap of ignoring that business while chasing profits in other parts of the value chain,” Elkann said.

Last year, CEO Sergio Marchionne flung all sorts of woo at General Motors in a bid to be taken over by a larger partner, but all of his advances were rebuffed. GM CEO Mary Barra told Marchionne that her company wanted its space and wasn’t interested in playing the field.

It’s unlikely that browbeating your competitors will compel them to merge with you, but Elkann, with Marchionne as his wingman, are going to keep trying until the company finally sees some action.

[Image: Suzana Gudolle Dias de Bam/ Flickr (CC BY 2.0)]

Steph Willems
Steph Willems

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  • Geekcarlover Geekcarlover on Apr 14, 2016

    Stop dreaming of the West young man. Look East, think Tata.

  • Islander800 Islander800 on Apr 14, 2016

    You know what partnership arrangement might make sense for Sergio? Team up with PSA, the Peugeot/Citroen company, just fresh from an investment guarantee from the French government, and who have stated an intent to re-enter the North American market within the next few years. Their range of vehicles is, in many respects, a refreshing take on the 21st century auto we haven't seen from the same old same old, and every bit as good as anything from Asia, America, or....Germany. Wait for it.

    • See 2 previous
    • Jeff S Jeff S on Apr 15, 2016

      @PrincipalDan If Chrysler merged with GM it would have been the end of GM and Chrysler would still be in the situation they are in today. Mahindra might be interested in Fiat Chrysler.

  • Lorenzo Well, it was never an off-roader, much less a military vehicle, so let the people with too much money play make believe.
  • EBFlex The best gift would have been a huge bonfire of all the fak mustangs in inventory and shutting down the factory that makes them.Heck, nobody would even have to risk life and limb starting the fire, just park em close together and wait for the super environmentally friendly EV fire to commence.
  • Varezhka Of all the countries to complain about WTO rules violation, especially that related to battery business…
  • Carson D At 1:24 AM, the voyage data recorder (VDR) stopped recording the vessel’s system data, but it was able to continue taping audio. At 1:26 AM, the VDR resumed recording vessel system data. Three minutes later, the Dali collided with the bridge. Nothing suspicious at all. Let's go get some booster shots!
  • Darren Mertz Where's the heater control? Where's the Radio control? Where the bloody speedometer?? In a menu I suppose. How safe is that??? Volvo....
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