Toyota Not Interested In FCA Merger - Why Is FCA So Adamant for A Hook Up?

FCA wants a hook up because Sergio knows that the industry as it exists today cannot generate the kind of returns that investors demand. Keeping the stock at an attractive price or borrowing money will be harder for FCA then the stronger competitors. Larger firms or strong niche competitors will have an easier time doing that then FCA and other weaklings. BUT, if you are one of those larger stronger firms your best strategy is to let the weak die off, which leaves more market for you. Hence they have no interest in FCA. One of Sergio's biggest weaknesses is that he talks too much, especially about things he has not thought through. He would have been better off to say nothing and let Goldman Sachs or whoever he has hired to quietly approach potential partners. Now Sergio has telegraphed to the world that FCA is a weak player.

I guess I misinterpreted the title of your post 009. I read the article and both Ford and Toyota said they had NOT been approached by Marchionne about merging and were merely stating their position IF they were to be approached by FCA. I read your title and thought that FCA had approached Toyota.

Yet Toyota for all intents and purposes has Subaru and Mazda under their corporate umbrella. Marchionne may have to go hat in hand to VW or sell to the Chinese, which is oddly what Cerberus tried to do.

It would be interesting to be fly on the wall in any VW and Marchionne meeting. Recall a couple of years ago Marchionne was vocally complaining about VW's market power in Europe, that was "hurting" everyone else. In essence he was telling them to back off their Euro sales. Rightly they ignored him. The faster Europe gets down to few strong auto companies the sooner profits will appear and/or go up for the survivors, who can then invest in the business.

Are the Chinese ready to buy international auto firms when they are trying to consolidate their native auto firms? Would they even take FCA if it was given to them?

The European theater will be better off with consolidation. Renault should merge with PSA and then KILL the two brands with the lowest volume.

VW could buy FCA, keep Maserati, Ferrari (which is still FCA), Jeep, Alfa Romeo, and Ram (for NA) and shutter Fiat, Lancia, and SEAT.

FCA is nearing the end of the rope.
While Chrysler supports it from the USA - it has almost no competitive product in cars and SUV's elsewhere. Chrysler product is for the US market for the most part - and they can't sell it in other countries.
FCA needs platforms, engines, transmissions, but they really cannot afford to constantly go out in the market to "purchase" the technology as they did with ZF transmissions. Otherwise - the Dart and 200 are too heavy, the tiger shark engines are last generation - and they have little upside left. They need to get a deal done "asap" before the remaining assets they have are no good

Chrysler as I mentioned earlier, is generating nearly ALL profits for FCA and the other car companies all know it. Chrysler is needing new product and the stealing from one hand to feed the other cannot go on forever. The Dart & Chrysler 200 are not generating what is needed to sustain and the 300, as great a product as that has been cannot go on forever. Though its still a strong product its 10+ years old and its architecture is ancient MB. Fiat is not hitting it out of the park globally and Alfa also needs product. Spinning off Ferrari won't generate huge sums and Lancia is all but dead. VW has no need of any of FCA, not sure how Toyota could gain. Nissan has their own hook ups so I'm not sure who else there could be. GM doesn't need anything they can offer either, nor Ford. Jeep is the only thing with real value but who needs that? Matt's probably correct a Chinese company with cash. Again, I hear Chrysler letting hundreds of engineers go so that is a huge sign the $$ is running out as they are the life blood of product development.

Actually FCA's profits are coming from two product lines; Jeep and RAM.

One FCA strategy could be to be an integrator of different manufacturer's technology; buy engines, transmissions, electronics, etc. Since you are using their engineering know how you don't need and cannot afford lots of your own engineers. Be the packager, assembler, marketer and support the system. Big parts of the computer industry operate that way. But it is tough to differentiate yourself.

Appreciate the "clearer definition" however I didn't mean that "Chrysler" is the profit generator, I meant what came to Fiat meaning all brands that fell under Chrysler LLC. Completely aware that Jeep & Ram are the $$ engines especially as Jeep approaches 1M units this year which is unprecedented.

Also note the FCA is not Fiat/Jeep & Ram.. its Fiat/Chrysler... and prior as mentioned was Chrysler LLC...

@Vette71 - that's a good and important point about Jeep & Ram are the profit source, not Chrysler.