GM Views FCA Overtures As Bailout While Marchionne Says It Is A Move From Mediocrity - Which Is True?

General Motors has flatly rejected the advances of its crosstown rival, Fiat Chrysler Automobiles, but FCA CEO Sergio Marchionne is not going away -- not by a long shot.

Marchionne says he has sweated the details and done the math and discovered there's far too much upside in a merger of FCA and GM to let a deal go undone, or at least unexplored.

In a blunt, two-hour interview in his downtown Detroit office, Marchionne said the numbers come out so good that his board of directors has no choice but to put pressure on GM to begin discussions now.

"It would be unconscionable not to force a partner," he said.

That sounds like a hostile takeover bid is in the works.
 

Vette71 - 8/31/2015 4:55:16 PM

+2 Boost

Marchionne has a track record of trouble with both dates and numbers. He routinely goes public with plans that never materialize or are delayed a great deal. And some of his volume predictions (see Fiat, Alfa and Maserati) are completely unrealistic. One has to apply a huge fudge factor to his statements, which in this case would say his numbers are not real. Stay away GM, stay very far away.

rockreid - 8/31/2015 7:40:14 PM

-2 Boost

if anyone can turn around Cadillac it is the Italians. The bosses at Cadillac refuse to listen to their potential younger customer base which has stated over and over with their pocketbooks for the last 15 years that the whole entire "Art and Science" design language just plain sucks. The entire Design team needs to be blown up and start all over. Cadillac branding and design could be so much more. Funny it's the Italians that could resurrect a once great American brand.

MDarringer - 8/31/2015 9:26:01 PM

+1 Boost

Merging with GM means Chrysler dies (duplicates Chevrolet), Ram dies (duplicates Chevy and GMC), Dodge probably dies (the "Pontiac" of FCA needs a massive infusion of cash for new product), and Jeep could be co-branded in Cadillac dealers at best.

Alfa Romeo and Maserati duplicate Cadillac's market.

By the way, the Ghibli can now be had on a massively incentivized lease for $499 a month.

GM guard yourself.

PUGPROUD - 9/1/2015 2:11:31 AM

+2 Boost

FCA is in a cash flow crisis big time and is looking for a sugar daddy to bail them out. He would be better off selling off the brands (Alfa to VW, etc) but his ego, workers and Italian government will not allow it. He is a desperate man leading from weakness. Italy is broke, China
is struggling and GM after being bailed out will not go near this deal for good reasons. My heart loves Alfa's and Hellcats but my business head says he needs to pull a cash cow out of a hat soon or he is gone and FCA is broken up.