Fiat Chrysler Automobiles Still Interested in Merger, Only Big Carmakers Wanted

Fiat Chrysler Automobiles is still on the lookout for a potential merger partner. The Italian-American company’s representatives have mentioned their interest in signing a partnership with another corporation, but no talks have been held in this direction.
John Elkann 1 photo
Photo: Fiat Chrysler Automobiles
John Elkann, chairman of FCA and chosen heir of Gianni Agnelli, wrote a letter to the shareholders of Exor, an investment fund that owns 29% of FCA, highlighting the benefits of a merger with another automaker.

According to previous statements made by FCA CEO Sergio Marchionne, a merger with another carmaker would bring savings of up to $10 billion a year. Initially, Marchionne was rumored to have negotiated an alliance with General Motors, but the corporation is now out of FCA’s list of potential partners.

The Volkswagen Group was also reportedly considered by Marchionne, but later ditched for lack of interest from the German corporation.

Instead, Ford and Toyota are now seen as potential companies that could sign a partnership with Fiat Chrysler Automobiles. Ford representatives also denied any interest in a merger with FCA, and expressed this decision through a press release.

While the merger with a big carmaker is unlikely, Marchionne believes they have a better shot at this than joining forces with the South Korean carmakers. While the latter party is influential in finance, Marchionne marked them as not interested in external partnerships.

Along with significant savings in the cost of development, manufacture, and distribution, FCA is looking for a carmaker to partner with in China. Currently, the world’s largest auto market is the weakest link for Fiat Chrysler Automobiles, as the Detroit Free Press notes.

The Italian-American corporation will have its annual shareholder meeting next week, and Marchionne and Elkann’s words might be heard again in another official context. The organization that is known now as FCA started with a courageous merger envisioned by Marchionne and accomplished through the acquisition of the Chrysler Group. Sergio Marchionne's push for such a partnership is motivated by harsh conditions on the European market and the need for several brands in the lineup for a complete overhaul.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Sebastian Toma
Sebastian Toma profile photo

Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories