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Fiat Chrysler(FCA) looking to merge?


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FCA looking to merge to remain profitable.

 

Sergio Marchionne is adamant that global automakers will have to merge to remain profitable in the near future, and he'll tell that to anyone who's listening. Mary Barra, however, is not interested. According toThe New York Times, the Fiat-Chrysler chief proposed a merger with General Motors via email to his counterpart back in March. Marchionne proposed meeting to discuss the matter, but Barra and her team reportedly rejected even entertaining the idea.

 

http://www.autoblog.com/2015/05/25/marchionne-emailed-barra-fca-gm-merger-report/

 

 

Edit: Have not seen this posted elsewhere on this forum, but if it is, please delete.

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It made sense for jeep to join Chrysler back in the day because they weren't full line but, Chrysler and GM merging? GM has so many offerings already. I could seen some of the smaller Japanese companies like Mitsubishi to join up with another maker.

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It made sense for jeep to join Chrysler back in the day because they weren't full line but, Chrysler and GM merging? GM has so many offerings already. I could seen some of the smaller Japanese companies like Mitsubishi to join up with another maker.

 

 

Hardly the way it went down. Chrysler bought out AMC to get Jeep because they saw that Jeep was going to be a gold mine. And it has been.

 

As for this merger, during the worst days of the recession there were some more serious talks of GM and Chrysler merging, mostly because they could slash staff (costs) and still be a juggernaut in the industry.

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I don't see the merit in any such merger.

They both make the same cars for the same segments.

So what is the point?

 

GM already makes two truck brands. Going to add RAM to the mix?

Offer a Camaro with a hemi engine or a Charger with a GM engine?

 

And if memory serves me, GM once tried to buy Fiat - and lost a lot of money in the process.

 

"By Gail Edmondson General Motors (GM) shareholders can sleep easier now that the company no longer risks being forced to buy ailing Italian carmaker Fiat Auto. On Feb. 13, GM agreed to pay $2 billion to terminate the five-year-old put option that gave the Italian industrial conglomerate Fiat Group (FIA) the right to sell Fiat Auto to GM for a fair market price."

 

LINK

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  • 1 month later...

Looks like FCA has its hands full with the NHTSA.

 

$105 Million dollar fine. http://www.autoblog.com/2015/07/26/fiat-chrysler-nhtsa-105-million-fine-report/

 

Air bag recall. http://www.autoblog.com/2015/07/26/fca-2million-ram-airbag-recall/

 

& the biggest issue is buying back 500,000 vehicles plus making offers on an additional million if I am understanding everything correctly.

 

Fiat Chrysler must offer to buy back from customers more than 500,000 Ram pickup trucks and other vehicles in the biggest such action in U.S. history as part of a costly deal with safety regulators to settle legal problems in about two dozen recalls.

The Italian-American automaker also faces a record civil fine of up to $105 million. In addition, owners of more than a million older Jeeps with vulnerable rear-mounted gas tanks will be able to trade them in or be paid by Chrysler to have the vehicles repaired.

The settlement is the latest sign that auto safety regulators are taking a more aggressive approach toward companies that fail to disclose defects or don't properly conduct a recall.

The Ram pickups, which are the company's top-selling vehicle, have defective steering parts that can cause drivers to lose control. Some previous repairs have been unsuccessful, so Fiat Chrysler agreed to the buyback, according to the National Highway Traffic Safety Administration. Owners also have the option of getting them repaired, the agency said in documents released Sunday.

The older Jeeps have fuel tanks located behind the rear axle, with little to shield them in a rear crash. They can rupture and spill gasoline, causing a fire. At least 75 people have died in crash-related fires, although Fiat Chrysler maintains they are as safe as comparable vehicles from the same era.

Both the Jeep and Ram measures are part of a larger settlement between the government and the automaker over allegations of misconduct in 23 recalls covering more than 11 million vehicles. Besides the civil penalty, which was reported Saturday by The Associated Press, Fiat Chrysler agreed to an independent recall monitor and strict federal oversight. It's another step in NHTSA's effort to right itself after being criticized for lapses in some highly-publicized safety recalls.

http://abcnews.go.com/US/wireStory/ap-sources-fiat-chrysler-buy-back-300000-pickups-32700226

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I don't see the merit in any such merger.

They both make the same cars for the same segments.

So what is the point?

 

GM already makes two truck brands. Going to add RAM to the mix?

Offer a Camaro with a hemi engine or a Charger with a GM engine?

 

And if memory serves me, GM once tried to buy Fiat - and lost a lot of money in the process.

 

"By Gail Edmondson General Motors (GM) shareholders can sleep easier now that the company no longer risks being forced to buy ailing Italian carmaker Fiat Auto. On Feb. 13, GM agreed to pay $2 billion to terminate the five-year-old put option that gave the Italian industrial conglomerate Fiat Group (FIA) the right to sell Fiat Auto to GM for a fair market price."

 

LINK

Lol, yeah, I had forgotten GM PAID for Fiat to go away. How things change.

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  • 1 month later...

http://news.allpar.com/index.php/2015/08/sergio-fcagm-even-if-it-means-a-bear-hug-yes-its-real-29819

 

its looking like Sergio won't take no for an answer; GM and FCA have so many competing products, you have to wonder if this Merger (or Hostile Takeover if it comes to that) happens, which product lines would most likely be on the chopping block.

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I have no idea how it would work. I read about the first go-around of this back in 2008/9 when GM was open to it. If their claim about not losing plants or dealers is true, the models may not end up on the chopping block but just may be given a new, common platform. I feel like the biggest gain (savings) would be in the reduction of white collar jobs- they wouldn't need two financial divisions, PR, engineering, etc. But frankly I really doubt it would happen. That said the DOJ let all the airlines get absorbed into essentially 4 carriers so ya never know I guess.

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I have no idea how it would work. I read about the first go-around of this back in 2008/9 when GM was open to it. If their claim about not losing plants or dealers is true, the models may not end up on the chopping block but just may be given a new, common platform. I feel like the biggest gain (savings) would be in the reduction of white collar jobs- they wouldn't need two financial divisions, PR, engineering, etc. But frankly I really doubt it would happen. That said the DOJ let all the airlines get absorbed into essentially 4 carriers so ya never know I guess.

 

its much the same way with US Railroads; there are only 4 American Owned Class I Freight Railroads in the country.

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its much the same way with US Railroads; there are only 4 American Owned Class I Freight Railroads in the country.

 

Which has nothing to do with consumers. Much of our stuff may spend some time on a rail car but that's irrelevant to consumers. The DOJ has an interest in this proposed merger and should've been more cautious with the airlines in terms of anti trust laws.

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