The Fiat-Chrysler-GME Merger
“Chrysler is on track to re-emerge from bankruptcy in 60 days,” Marchionne swas quoted as saying by the source. "I will become Chrysler CEO after that.” The Italian official is currently in the US, expecting to meet with Chrysler representatives to talk about a possible merger.
Yes, we did say merger. According to Bloomberg, Fiat's CEO is planning the merger of the three entities he either controls or plans to control. The purpose is to create one company, comprised of Fiat, Chrysler and GME (Saab, Opel and Vauxhall).
While a possible merger with Chrysler is backed by the 20 percent Fiat already holds in the manufacturer, not the same can be said about GME. Opel's workers dread Fiat, Vauxhall as well while Saab doesn't seem to have made up its mind yet. This is why Marchionne says the talks about the GME operations will be held with General Motors.
The Italian CEO wants to do all this without spending any cash. He did say however he is "ready to offer 100 percent of Fiat’s auto unit - clean of debt - and assume Opel’s debt."
The future company structure would be spilt in two. On one side it will be Chrysler/GME /Fiat (the car division) and on the other Fiat SpA, comprised of Iveco, CNH Global NV and luxury brands Ferrari and Maserati. Shares of the future company will be sold with an initial public offering in Milan and Frankfurt
The birth of the future auto group will come at a cost. “For sure there will be a reduction of the headcount because volumes don’t support it,” said Marchionne.
What if it doesn't play out? Marchionne seems to have it covered. “For sure there will be a reduction of the headcount because volumes don’t support it. I’m already very busy,” he added.