Fiat Chrysler Automobiles boss Sergio Marchionne is reportedly seeking a merger for his company with General Motors, but GM officials are cold to the idea.
Speaking to industry journal Automotive News Europe, Marchionne said a merger between the two companies would result in "cataclysmic changes in performance" for the two automotive giants. "I've gone through product by product, plant by plant, area by area, and I've analyzed them all," he said.
“I've obviously made some arbitrary assumptions about which architectures survive, which engines survive, and the only deal that offers them the same benefits as we potentially get ... is us.”
However, Marchionne has also said that GM officials have been cold on any negotiations, saying: "I've offered to sit down with them and take them through the numbers
“They won't listen. And that kind of abject refusal to engage ... the capital markets won't understand why you are rejecting the discussion.
“You may reject the deal but you can't reject the discussion. If you're refusing to talk to me, and you have seen nothing, you either think you're above it all, or you think the capital markets are full of schmucks that owe you something.”
For its part, a statement for General Motors says the company has "responded appropriately" to any "outreaches" that it has received.
GM boss Mary Barra said back in June that Marchionne had emailed her with proposals for a merger, but that the GM board gave "strong support" to the company continuing on its own parth. During a media briefing at GM's annual meeting, Barra said the propsal was: "very much vetted with management and our board, and after we reviewed that we are committed to our plan…and we have strong support."
"We have scale. We have leveraged the appropriate opportunities."
In Europe, Fiat-Chrysler is currently focusing on the relaunch of Alfa Romeo with the new Giulia, and on re-branding the Fiat brand into two distinct arms - dubbed 'emotional' and 'rational'.
Industry analyst Max Warburton has warned investors that merging FCA and GM would be "an operational and management nightmare" but concedes that "if anyone can smash through the issues and make it function, it would be Marchionne."
GM is seen as being the latest target of FCA's merger aspirations. Back in April, PSA Peugeot-Citroën ruled itself out of a merger with FCA, at least until the French firm had completed its 'Back in the Race' revival plan. In May of this year, FCA renewed its call for more mergers in the automotive industry.
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