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  • William Maley
    William Maley

    Marchionne Still Dreams of A FCA-GM Merger

    Marchionne, No means no.

    You have to admire Fiat Chrysler Automobiles' CEO Sergio Marchionne for still hanging onto the dream of FCA and General Motors merging, despite being told repeatedly that isn't going to happen. At the Geneva Motor Show this week, Marchionne put out there that he is still interested in getting together with GM.

    "I never close any doors. I may shamelessly try and knock again ... on the GM door or any door if I thought it was a good thing for the business. Absolutely, without even blinking. The desirability of GM as a potential merger candidate remains untouched," said Marchionne.

    Unsurprisingly, GM shot down Marchionne's dreams.

    "We weren't interested before and we're even less interested now," said GM President Dan Ammann.

    Marchionne isn't one to give up however, he has a plan B: Volkswagen. As he told Bloomberg, with PSA Group becoming the second largest automaker in Europe with the acquisition of Opel/Vauxhall, this could put Volkswagen in a vulnerable position. He sees the company possibly looking for a partner.

    “I have no doubt that at the relevant time VW may show up and have a chat” about a merger, said Marchionne.

    Volkswagen CEO Matthias Müller slapped down that idea when asked.

    “We are not ready for talks about anything. I haven’t seen Marchionne for months,” said Müller.

    “We have other problems.” 

    Source: Bloomberg , Reuters, (2)


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    If GM put a ban on wearing black sweaters at work, Sergio would leave them alone forever.

    He should try to merge with PSA, no one wants cars "Imported From Detroit" he could try some imported from France and use Citroen to fill Chrysler dealerships.   And they can consolidate some of the other brands.

     

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    :roflmao: VW has many other options before even needing to think about FCA. What a joke. 

    Yes, one could make a case for VW and FCA so VW gets Jeep and Ram and sells off Dodge/Chrysler to some China Company. Fiat/Alfa would also either be sold off or closed.

    Sergio just does not seem to get it, he is clueless about what other companies would need to fulfill the final pieces. VW has just about everything they need and might only be interested in Jeep / Ram. Course they could also easily build their own versions of those two which is what I really think VW would do.

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    11 minutes ago, dfelt said:

    VW has just about everything they need and might only be interested in Jeep / Ram. Course they could also easily build their own versions of those two which is what I really think VW would do.

    While I agree.. Ram and Jeep as names carry a ton of weight that even if VW made a better product it would take sooooo long before it overtook Jeep/Ram in sales.

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    3 minutes ago, ccap41 said:

    While I agree.. Ram and Jeep as names carry a ton of weight that even if VW made a better product it would take sooooo long before it overtook Jeep/Ram in sales.

    True name recognition in the US with those two is big. That is the only reason I could see VW buy those two items. Pass on the rest. If VW did want to do it all in house though I believe they could.

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    1 hour ago, dfelt said:

    True name recognition in the US with those two is big. That is the only reason I could see VW buy those two items. Pass on the rest. If VW did want to do it all in house though I believe they could.

    Oh I definitely think VW is capable of making any vehicle great that they want to. It might be bland..but great.. lol

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    Here are the facts. 

    Sergio is an idiot. 

    FCA at some point is going to crash as they can not continue on and one economic turn down will kill them. 

    Once Fiat crashes look for VW or Daimler to swoop in and buy Jeep and Ram from FCA out of the wreckage. 

    The only thing is VW needs to pay of the Diesel issue first as they have big loans on that secured by Bentley. Sales have been good so they should get back on track soon. 

    As for PSA well they are going to go no where. They have no real fans outside of Europe and even inside they only have friends in France. They are mostly a punch line for Jeremy Clarkson. 

    GM left Europe for Geopolitical, labor and economic reasons they themselves seen as outsiders could not get much help with. Often you have to take a step back before you can move forward. But in this case with 16 years of losses in Europe it was not really much of a step back.  

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    Sorry, but this article reads like it was originally from The Onion.  Why would Sergio criticize the PSA/Opel deal when it was his idea to spin off Ferrari as its own publicly traded company?

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    6 minutes ago, aurora97 said:

    Sorry, but this article reads like it was originally from The Onion.  Why would Sergio criticize the PSA/Opel deal when it was his idea to spin off Ferrari as its own publicly traded company?

    Welcome the Twilight Zone, here is your black sweater.

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    VW looks at things globally, the only global brand at FCA with any value is Jeep.   I am sure VW would love to have Jeep in the arsenal, Ram trucks would make profit in USA would would help them, but isn't like something they really need.  I don't think the value of Jeep offsets the worthlessness of Dodge/Chrysler/Fiat/Alfa/Maserati to VW.  

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    There certainly is more to FCA of value than just Jeep.

    SEAT's highest volume line is the Ibiza: it sold 160K in 2015.
    Skoda's highest volume line is the Octavia: it sold 436K in 2016.

    Ram sold 544K units in 2016 in the U.S. only. And without a doubt the profit margins on the Ram are many times over that of the ibiza or Octavia. Cash cows are always appealing in a business case.

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    Funny seeing as a couple months ago he said there was absolutely no intrest in a merger anymore.  At least he should be laving soon. 

     

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    13 hours ago, hyperv6 said:

    Here are the facts. 

    Sergio is an idiot. 

    FCA at some point is going to crash as they can not continue on and one economic turn down will kill them. 

    Once Fiat crashes look for VW or Daimler to swoop in and buy Jeep and Ram from FCA out of the wreckage. 

    The only thing is VW needs to pay of the Diesel issue first as they have big loans on that secured by Bentley. Sales have been good so they should get back on track soon. 

    As for PSA well they are going to go no where. They have no real fans outside of Europe and even inside they only have friends in France. They are mostly a punch line for Jeremy Clarkson. 

    GM left Europe for Geopolitical, labor and economic reasons they themselves seen as outsiders could not get much help with. Often you have to take a step back before you can move forward. But in this case with 16 years of losses in Europe it was not really much of a step back.  

    Moe hyperbole.  they are actually paying down their debt at an incredible rate.  the new platform and turbo 4 engines that will spread across the line are now out there, the new Compass looks to be a hit, The Wagoneer, Grand Wagoneer, and new Ram are coming.  The Compass looks to be a hit.  The LX cars are cash cows as the tooling is long paid off and the Charger has a strong following in police fleets.  The KSP for example uses almost exclusively Chargers.  Despite a lack of updates, the Journey continues to post higher sales numbers each month while being a cash cow, as, again, the tooling is long paid off.  Hellcat demand continues to outpace production capacities.  They could be the number 1 seller in the world and you would still be predicting doom........

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    If all these FCA products were such great cash cows, Sergio wouldn't constantly be looking for merger partners.  FCA is spending almost nothing in on new products, so what do they sell in 2020 with so little in the pipeline?  And one global downturn, recession or gas spike could be 2009 all over again for them and he knows it.  They are making money now because the auto market has had back to back record sales years, that won't last forever.  

    Maybe he should contact Carlos Ghosn, he like alliances and mergers, and he took on Mitsubishi so apparently no car maker is too far lost for him to take on.  Nissan would get the full size truck they want, Renault can absorb any Fiat models worth keeping, they could sell Renault in USA at existing dealers (the new Renault Alpine 110 looks pretty sweet), they can kill Chrysler and sell the Pacifica at Nissan or Dodge or both, they'd keep Jeep as is.

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    11 minutes ago, smk4565 said:

    If all these FCA products were such great cash cows, Sergio wouldn't constantly be looking for merger partners.  FCA is spending almost nothing in on new products, so what do they sell in 2020 with so little in the pipeline?  And one global downturn, recession or gas spike could be 2009 all over again for them and he knows it.  They are making money now because the auto market has had back to back record sales years, that won't last forever.  

    Maybe he should contact Carlos Ghosn, he like alliances and mergers, and he took on Mitsubishi so apparently no car maker is too far lost for him to take on.  Nissan would get the full size truck they want, Renault can absorb any Fiat models worth keeping, they could sell Renault in USA at existing dealers (the new Renault Alpine 110 looks pretty sweet), they can kill Chrysler and sell the Pacifica at Nissan or Dodge or both, they'd keep Jeep as is.

    Um, there is tons of new product coming in the next few years.  I understand what they are doing right now is using what they have to get rid of debt rather quickly before starting a costly product onslaught.  We know the new Alfa sedan and SUV are just a beginning of what we are going to see as the platform and turbo 4 will be spreading across the lineup.  They have to.  The more vehicles a platform can cover, they more they get to amortize the cost, and the more profit they make. 

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    Yes Stew.. I have to agree with Smk and Hyper on this one. FCA is for all intents a 3 Trick Pony.. in that they have Jeep. But then they have Ram.. and LX cars NOT being updated in order to pay the bills. Look at the fact that FCA's profits are very weak considering the last two points made. One good update to Ram and profit SAP is on the way. One good spike in Fuel costs and BOOM.. their reliance on the SRT "We Build Excitement" (lol) goes away. Jeep is really the only thing that I could see GM really wanting.. Maserati would probably be desirable to Ford. Ferrari is gone on its own. Alfa is really nothing to write home about. Chrysler is pretty much a minivan. They have no.. and I mean no small cars in the mainstream brand (Dodge). They have no.. and I mean no mid-size in the mainstream brand. Pretty much FCA in the U.S. is Charger cop cars, Challenger, Ram, and Jeep... oh and a minivan. 

    Personally I see no reason for Mary to even consider it once those facts are presented. Does GM need SRT?? Hell no. The Camaro alone does everything that the performance cars at Dodge do better. They have the capability, and frankly the necessity for scale to build an Omega or Alpha-L Impala that could put the Charger on the flatbed. Does GM need Ram??? Hell no. Come on. Does GM need Jeep??? Not even. GMC could easily take on Jeep I think if they wanted to. 

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    10 minutes ago, Cmicasa the Great said:

    Yes Stew.. I have to agree with Smk and Hyper on this one. FCA is for all intents a 3 Trick Pony.. in that they have Jeep. But then they have Ram.. and LX cars NOT being updated in order to pay the bills. Look at the fact that FCA's profits are very weak considering the last two points made. One good update to Ram and profit SAP is on the way. One good spike in Fuel costs and BOOM.. their reliance on the SRT "We Build Excitement" (lol) goes away. Jeep is really the only thing that I could see GM really wanting.. Maserati would probably be desirable to Ford. Ferrari is gone on its own. Alfa is really nothing to write home about. Chrysler is pretty much a minivan. They have no.. and I mean no small cars in the mainstream brand (Dodge). They have no.. and I mean no mid-size in the mainstream brand. Pretty much FCA in the U.S. is Charger cop cars, Challenger, Ram, and Jeep... oh and a minivan. 

    Personally I see no reason for Mary to even consider it once those facts are presented. Does GM need SRT?? Hell no. The Camaro alone does everything that the performance cars at Dodge do better. They have the capability, and frankly the necessity for scale to build an Omega or Alpha-L Impala that could put the Charger on the flatbed. Does GM need Ram??? Hell no. Come on. Does GM need Jeep??? Not even. GMC could easily take on Jeep I think if they wanted to. 

    Of course, you see everything through GM Rose colored glasses.......

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    Just now, Cmicasa the Great said:

    Of course i70mfl.jpg

    And I am ok with that.  I tend to have a multi-national driveway haha.  2 Dodges, a Chevy, a Toyota, and a VW lol. 

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    12 hours ago, balthazar said:

    There certainly is more to FCA of value than just Jeep.

    SEAT's highest volume line is the Ibiza: it sold 160K in 2015.
    Skoda's highest volume line is the Octavia: it sold 436K in 2016.

    Ram sold 544K units in 2016 in the U.S. only. And without a doubt the profit margins on the Ram are many times over that of the ibiza or Octavia. Cash cows are always appealing in a business case.

    Not only that but VW is a company that makes two different variants of certain cars, so they obviously see the value in catering to a specific market- the US, in this case- if the rewards are great enough.

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    With all of his merger talk and subsequent shoot downs, Sergio is like the kid that keeps punching himself in the nuts and expecting it to no longer hurt. How is this man in charge of anything?

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    59 minutes ago, Cmicasa the Great said:

    Personally I see no reason for Mary to even consider it once those facts are presented. Does GM need SRT?? Hell no. The Camaro alone does everything that the performance cars at Dodge do better. They have the capability, and frankly the necessity for scale to build an Omega or Alpha-L Impala that could put the Charger on the flatbed. Does GM need Ram??? Hell no. Come on. Does GM need Jeep??? Not even. GMC could easily take on Jeep I think if they wanted to. 

    GM(or anybody else) could always use the Jeep brand regardless of what product they could produce themselves. But I completely agree with everything else you said. They simply don't really make competitive products anymore. They have a few niche items like the Hellcats and SRT Grand Cherokee that everybody seems to love but outside of those the rest is old(save for the van, Cherokee & now Compass) or is a Fiat... Jeep is the only thing I would want to buy from them.

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    49 minutes ago, Stew said:

    And I am ok with that.  I tend to have a multi-national driveway haha.  2 Dodges, a Chevy, a Toyota, and a VW lol. 

    Yeah..  I kno. I'm a GM or Ford kinda guy since 1998. Before Chrysler hooked up with Daimler. Either way.. I am still looking at it from a business standpoint.. and business wise a GM/FCA hook-up would only spawn issues with the union at this point. On top of that the overlap if GM revitalized Dodge and Chrysler alone would be massive. If they were gonna do that they may as well of just reopened Pontiac. That would give em 500K sales instantly.. For the Jeep thing.. Again I call for a trim level based solely on the Canyon that emulates.. U guessed it.  the Hummer H3,  H3T and Hx concept 

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    One great thing is that the new Alfas are getting pretty rave reviews, basically replacing the Alpha based ATS as the mags favorite small luxury car.  unfortunately this doesn't guarantee sales, but when this platform makes it way to Dodge in will be a game changer, as much as the original LX cars were when they came out.  The new Turbo 4 is also getting rave reviews.  For a RWD 4 cylinder Alfa MT got 0-60 in 5.1 and a 1/4 mile of 13.6.  That is quicker than most of the competitions optional V6s and way quicker than their base 4 bangers.  The next resting place for this engine will be the new Wrangler, though I am sure it will be tuned for more low end torque where the Alfa version is tuned for mid/top end HP.  The Real MPG numbers were also pretty impressive at 38.1 on the highway, and I believe a 32 MPG average.  Things are going to get interesting over the next few years. 

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