Fiat Chrysler Expecting New Merger
June 1, 2015—On Thursday, Fiat Chrysler chief Sergio Marchionne said he expects a new merger in the auto industry by 2018, without confirming a proposed tie-up with General Motors, according to IndustryWeek.
“It is a personal opinion, certainly, but I am sure that there will be a merger between now and 2018 in the auto industry,” Marchionne was quoted as saying by Italian news agencies during a visit to Fiat Chrysler Automobiles (FCA) Melfi factory in southern Italy.
The specific carmakers were not commented on, and when asked about reports that an email was sent to the head of GM to suggest a merger, Marchionne declined to comment.
Fiat and GM have history, with the largest U.S. carmaker taking a 20 percent stake in Fiat while Fiat took a 5 percent stake in GM as they launched numerous joint ventures in 2000. However, their relationship suffered and in 2005, their alliance ended.
Marchionne, who took over Fiat in 2004, tried to get GM’s European unit Opel in 2009 when the the company filed for bankruptcy protection.
Marchionne was behind the merger between Fiat and Chrysler, finalized in 2014. FCA, which now has 7,500 workers, is expected to turn on a record 400,000 vehicles this year and has had a profit of $101 million, thanks to rising sales in the U.S.