GM Doesn’t Feel It Needs to “Bail Out” FCA
If you’ve been following the automotive news lately, you’ll know that Fiat Chrysler Automobiles’ (FCA) CEO Sergio Marchionne is pushing General Motors pretty hard to work out a deal to merge the two companies. So far, GM has not been receptive to Mr. Marchionne’s advances. He’s even implying that he might attempt a hostile takeover if they don’t do it. GM’s response? No way.
Mr. Marchionne believes that the joint company could make a lot of money. Marchionne’s calculations are in the $30 billion per year range. He even told Automotive News, “Just think about that [expletive] number.” Marchionne seems to have it all worked out, but he can’t even get a conversation with GM’s CEO, Mary Barra.
The deal makes sense. Consolidating the industry and platforms could potentially lower the operating costs of both companies, making cars and trucks cheaper to make. That would be a win-win, at least on paper. But General Motors is working on their own to consolidate products and lower expenses.
Plus, it seems FCA needs the deal more than General Motors. GM’s response to the latest pressure from Marchionne and FCA? “Why bail out FCA?”
What do you think of all of this merger talk? Would you be supportive of one giant combined company of FCA and GM, or would that be too big of a monopoly? Let us know over in the forums!
via [Automotive News]
