Photo: Fiat Chrysler Automobiles
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, 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.
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.
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