Who Should Fiat/Chryser Be Considering A Merge With And Why?

Fiat Chrysler Automobiles CEO Sergio Marchionne is looking at other automakers as merger candidates as the chances of striking a friendly deal with General Motors dwindle, people familiar with the matter told Bloomberg.

Marchionne has been working with an advisory firm to gauge investor interest in pushing for a combination of FCA and GM and is also looking at other candidates due to the Detroit carmaker’s lack of interest. He and his advisers are eyeing other large automakers as “Plan Bs” and considering France’s PSA Peugeot Citroen as a fallback option, said two of the people, who asked not to be identified because the matter is private.

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W124E320 - 6/11/2015 4:57:47 PM

0 Boost

Seems they might have missed the boat. Mazda makes great cars and cannot continue on their own. Clearly the Miata based Fiat 124 hopefully will look similar to the previous model, but they should have gotten closer. Toyota really doesn't need Mazda but does Mazda really "NEED" Toyota? Mazda's terrific platforms could be used across the FCA line up: Chrysler-Line / Fiat / Lancia / Alfa Romeo / Mazda. That said I have friends that tell me Chrysler is being bled dry by Fiat exactly like Mercedes did when they were DCX. They're laying off hundreds of engineers... wonder if Chrysler is finally going to die?

nguyenvuminh - 6/11/2015 6:06:07 PM

+2 Boost

Anyone that would say "yes" :-)

MDarringer - 6/11/2015 6:26:25 PM

+2 Boost

Cue Geely to the rescue and YES I do think Geely would do just that. The PR on being the "good Chinese company" could really work in their favor.

Vette71 - 6/12/2015 8:55:41 AM

+1 Boost

While interesting, Geely buying FCA would be like that Everglades anaconda trying swallow the alligator whole. Fatal for both. Better for Geely to go shopping at the FCA bankruptcy auction and acquire just the pieces it needs to grow at a pace it can handle. Geely still needs to show it can handle Volvo successfully.

MDarringer - 6/12/2015 1:27:02 PM

+1 Boost

And that is precisely what they will do. They will buy Ram and Jeep and smile.

TheSteve - 6/11/2015 6:33:16 PM

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Who's worse off that Fiat and Chrysler? That's who would consider joining them.

Vette71 - 6/12/2015 8:46:47 AM

+1 Boost

Peugeot. A French zombie auto firm supported by its government to "save" jobs, marries Fiat, an Italian zombie also kept alive by its government to "save" jobs, that was GIVEN by the US government a US terminally ill Chrysler to save jobs. WOW.This sounds like a formula for success. The excess capacity and redundancy in the global auto industry will only be resolved by brands, firms, and yes jobs, disappearing. Sergio is correct that it is a major industry problem. His problem is that everyone has figured out his firm is one that needs to disappear.

PUGPROUD - 6/11/2015 6:59:06 PM

+2 Boost

Goldman Sachs to secure endless cash flow!

Vette71 - 6/11/2015 10:51:37 PM

+1 Boost

Exactly!!

Vette71 - 6/12/2015 9:08:10 AM

+1 Boost

Sergio is correct that the global auto industry needs to consolidate, much like the USA industry did 60 years ago. Studebaker, Packard, Kaiser, et. al. just shut down with no one wanting them while Hudson, Nash merged into what became a weak AMC which also eventually merged into the weakest of the big three Chrysler, which eventually merged with weak Fiat. Insanity; "doing the same thing over again expecting different results". Only weak players will merge with FCA and that is insanity.

The interesting thing. Through all this turmoil, Jeep always survives.