GM Chrysler merger

[Colliewood]

Stumbled on this article from last fall, Fiat Chrysler CEO pushing for a merger with GM. Not sure the underlying motivation unless Fiat wants to unload Mopar and keep their dealerships for Fiat.

 

http://fortune.com/2015/09/06/fiat-chrysler-merger-gm/

 

Not sure how it even works with so much duplication. Would there be a Silverado with a Hemi? Some parts might work, Jeep for instance.

[Silverado Steve]

Yeah this is old news. GM already said not interested. Essentially Fiat wants to share development costs with other manufacturers which makes sense long term unfortunately for them GM brings more capital, assets and investment to the table and the Fiat side will weigh them down. Fiat needs to look to merge with another manufacturer their size, perhaps Nissan or join a conglomerate like VW/Audi

[edillen3953]

Fiat CEO has made no bones about wanting VW. Maybe with their problems now they are ripe for the picking.

[Snoringbear]

I have long thought that chrysler's motivation when breaking their truck line away from Dodge under a new stand alone division, Ram, was to enable a clean spin off. Chrysler's car line is a walking dead man. Ram and Jeep will survive by merging with some automaker that currently doesn't have a strong truck/suv presence in the market place. Nissan, Honda, VW perhaps?

[IOMike]

Sergio doesn't want to share development costs, he wants to use what others have developed with GMs only perk being larger scale use.

 

FCA already spends 1/3 the percentage of profits in R & D vs other companies.