This is downright unacceptable. GM/Chrysler merger

[PapaSmurf2k3]

http://finance.yahoo.com/news/fiat-chry ... 27176.html

I REALLY hope this doesn't go through.

[nissangirl74]

Sounds like a lot of "what-ifs" and "maybes" at the moment. If it does happen, the Chrysler people better stay the hell away from the Corvette and Cadillac divisions.

[Bubba1]

I don't see it happening. This idea has been tossed around a few times over the years, though usually when one of the two companies is in financial peril.

[RicerX]

LOL! Recalls and busted drivetrains COMBINING FOR INTERSTELLAR DOMINATION!!!

[Desert Rat]

That'd ruin Ram trucks, which are better in just about every way than current Chevys.

[Rogue One]

[Rogue One]

Toyota joins GM in saying no to Fiat Chrysler merger

Sergio Marchionne can’t catch a break.

The 62-year-old CEO of Fiat Chrysler Automobiles has been searching for another automaker to merge his company with, and he’s already been rejected once this week.

Toyota, one of the car makers in the world, also said no to any possible merger on Thursday, Bloomberg's Keith Naughton reported:

With annual global sales of 10 million vehicles, “we have enough scale right now to do what we need to do,” Jim Lentz, CEO of Toyota Motor North America, told reporters Thursday at the automaker’s technical center near Ann Arbor, Michigan. “There really would be no advantage for us” to combine with Fiat Chrysler.

Marchionne has been rebuffed by General Motors Co. as he seeks to consolidate with another automaker to better afford the high cost of new technology in cars. He has said he prefers a friendly deal, particularly with a company that has a similar product range.

Why does FCA want to merge with another manufacturer, despite it’s stock doing very well following a 2014 IPO? It’s all about globalization.

Marchionne maintains that that there are redundancies in the global auto market, and consolidation would mean less companies making essentially the same vehicles.

Marchionne was expected to step down after the initial merger between Fiat and Chrysler, but he stayed on through the IPO last year, even receiving a pay raise.

[PapaSmurf2k3]

Yeah, I wouldn't merge with him.
There are a lot of the same things going into the same types of cars, but most things are sourced from suppliers now a days, with minimal up front investment from the big guys.
There's no laws saying they can't share basic components and designs from suppliers, so that's really what they should do if they want to minimize redundancies.

[Jesda]

Mergers were all the rage in the 90s. They produced nothing but heartache and misery.

HEY REMEMBER THIS DISASTER?


WPC would never have allowed this to happen.

[Rogue One]

Is it any wonder nobody wants to get in bed with Fiat/Chrysler...

Fiat May Sales Drop To 3,857, And Brand Finishes Last In Quality Survey

Fiat Chrysler (NYSE: FCAU) got two pieces of bad news in the U.S. recently. The Fiat nameplate finished dead last in a carefully watched J.D. Power study. Additionally, Fiat sales fell 19% in May to a tiny 3,867.

In the new J.D. Power 2015 U.S. Initial Quality Study, during the first 90 days of ownership, people who bought Fiats had 161 problems per 100 vehicles. The average among all name plates was 112. Survey leader Porsche had 80.

The pace of Fiat sales for the first five months of the year were barely better than in May. Sales of the name plate during that period were 18,669, down 9%. Another sign of how rough Fiat’s position in the U.S. market is its “days to turn”, which is a measure of how long it takes dealers to sell units of a specific brand. The Fiat figure was 115 days last month, compared to an industry average of 66.

Among Fiat’s other challenges is that its sells all its models in one of the most competitive sectors of the car industry. Its MSRP prices begin at $16,485 and run to $31,800. Each is a light 4-cylinder or hybrid vehicle which gets high gas mileage. Some of the best selling cars in America are in the same sector and have been mainstays of the U.S. car market for years. At the top of this list are the Honda (NYSE: HMC) Accord, and Toyota (NYSE: TM) Corolla, which each sells over 30,000 units per month.

Fiat’s situation in the U.S. is bad enough that Fiat Chrysler ought to withdraw the brand from the market. The manufacturer would save millions of dollars in marketing investment, dealer and shipping costs, and, most of all, the humiliation of building and selling Fiats which are, by almost any measure, the worst cars on the American market.

[Bubba1]

I think Fiat is having the same problem in the US market as they did last time they sold cars here. As Rogue's attached article suggested, all of their US offerings both then and now are small, which worked/works fine in Europe. But here in 'Murica, the market still seems to lean toward super-size vehicles and full sized pickup trucks. And the competition in that small car segment is filled with firmly entrenched Japanese/Korean competition. So I totally get why they've struggled here and why they bought Chrysler. I don't necessarily think they should withdraw from the market, but they do need to a better job separating themselves from their competition. Fiat is certainly capable of producing fun vehicles (Abarth, Alfa Romeo, Ferrari, Maserati) but They need to either improve their reliability and/or extend the warranty. Hyundai got very successful doing both. Fiat should take notes from Hyundai rather than Following Fords old failed strategy of growth thru purchasing marques. Ford has since sold off many of those marques they bought..

As far as Marchionne's quest for world domination, I don't see trying to grab Ford, GM or Toyota ever happening. But If he's determined to buy marques, rather than doing limited joint ventures which makes more sense, I wonder if Mitsubishi, who used to have a relationship with pre-Fiat Chrysler might be better fit. Another thought is wrestling Nissan away from Renault. Mr. Ghosn and his mighyt fun-prevention department seems to have forgotten the passion. New leadership might be the answer.