Report: General Motors turns down merger offer from Fiat-Chrysler

Report: General Motors turns down merger offer from Fiat-Chrysler image

Text: Anton Andres / Photos: Fiat Chrysler Automobiles | posted May 26, 2015 13:41

Fiat-Chrysler CEO continues search for collaborators

In a recent report by The New York Times, a potential merger between Fiat-Chrysler and General Motors fell through and, as a result, Fiat-Chrysler shares slid down 3% in the Milan Stock Exchange.

According to the report, Fiat-Chrysler CEO Sergio Marchionne sent an e-mail to General Motors CEO Mary Barra as early as March of this year. Marchionne suggested to consolidate the car makers to cut down billions in cost. Barra turned down the offer as well as a meeting between the two to discuss the matter. At the moment, GM would rather continue its own plan on investing on its own products.

"I think it is absolutely clear that the amount of capital waste that's going on in this industry is something that requires remedy, a remedy in our view is through consolidation," said Marchionne in a routine analyst conference call last April 29. Under Marchionne's management, sales have doubled in the US after the recession and the realignment of the upper management.

Marchionne had stated that if he fails to find an automotive partner, he will contact Google and Apple to talk about a possible collaboration with them.

Source: The New York Times