Marchionne Says The Only Way To Compete With Volkswagen Is To Merge European Automakers

Europe needs auto industry consolidation to reverse poor operating conditions and uncertainty in a market burdened by overcapacity and little or no sales growth potential this year, the chief executive of Fiat SpA said on Monday.

Speaking with reporters on the sidelines of the Detroit auto show, Sergio Marchionne said he would be willing, in principle, to be part of a consolidation that would create another car company in Europe rivaling Volkswagen AG in size.

"If you take two of the European players and put them together, you're going to get the right answer," Marchionne said.



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knowitall1985 - 1/11/2012 4:30:24 PM

+1 Boost

Buying power and mfg. efficiency gives the best advantage. You have to move alot of iron to keep prices down.

tecnopolis - 1/11/2012 5:06:23 PM

+2 Boost

Sergio Marchionne is the "Warren Buffet" of the car industry.

wins555 - 1/11/2012 11:39:11 PM

+1 Boost

Easier said than done. Uber rich families own these European car companies and for sure their pride will get in the way. Can you imagine merging Mercedes and BMW? I cannot. Not for the next 10 years at least if ever.

FromThePassengerSeat - 1/12/2012 12:13:35 AM

-1 Boost

He must be joking. Aren't Fiat, Dodge, Alfa and Chrysler already competing with each other? The redundancy he's endorsing ruined GM.