What next at Fiat Chrysler Automobiles?

Sergio Marchionne, chief executive of Fiat Chrysler, believes GM and its investors would be better off using the Detroit car maker’s liquidity to acquire his company than buying back its shares. Can you imagine Ferrari as a GM brand, or has the spin-off protected the Scuderia from making the next Corvette? Has the Ferrari IPO been delayed until October to sweeten the deal?

Chrysler Boss Recruits Activists to Prod GM Into a Merger - WSJ

 

Who would another manufacturer want to acquire Fiat Chrysler with their margins way below industry average? Fiat and Chrysler themselves have already shown that combining two poor performing companies doesn't create a high performing company. That being said, some of the points about scale which Sergio makes are true.

Sergio is probably realizes his audacious strategy to raise $60B in capital to fund growth is not going happen, especially if interest rates rise. Or maybe his plan was to sell all along.

Ferrari's IPO was (apparently) delayed due to UK tax law: "Lawyers have advised that the IPO must wait for one year after the Fiat-Chrysler merger, which took effect on Oct. 12. A spokesman confirmed the remarks Saturday and said the period was defined by U.K. tax law."

Fiat Chrysler Delays Ferrari IPO - WSJ

 

Remember when LDM was crying that Ferrari was now an American company? Maybe the new Dino can be farmed out to Bowling Green? Is Sweaters Marchionne trying to keep pace with VW?

 

Yes and yes. Well, I hope not to the first question. The second question is a resounding yes. Neither FCA or GM can match VW's efficiency and profitability.

 

Gm came close to buying ferrari in the early 00s but the the banker brothers passed away before they could sell ferrari away from fiat .

 

Ask MB what sort of an idea owning Chrysler is.
As for buying Fiat. Selling cancer would be easier.

 

Look at the big brain on you!!!!

I think Sergio should change his name to Marco Polo - becuase I think the money is to be found in China - India. Anyone want to say Tata-FIAT-Chrysler? TFC? add in Jag, and Rover with Ferrari and you have a nice premier auto group. make Fiat's in India - China export to 3rd world - make Alfa, Lancia in USA Mexico - and sell in Europe - close all but one FIAT plan in Italy and say by by to union pension / Health funds.... open up $1-2B for distribution to investors... voila you have a 5 year plan to take Serio to retirement ....

 

Good stuff. Schumpeter would be proud! What the auto industry needs more than hybrids, links to Siri, and self-driving cars is a good dose of creative destruction!!!!