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Old 03-13-2015, 07:10 AM   #1
steve_biegler
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Default Is Sergio really looking for partner?

Auto News is saying Sergio has said that a "Merger" with GM or Ford could be feasible. I'm not sure if he is really looking for a company to combine with, or see how much he can stir the pot, or has something else going on and saying these things to throw off the hounds, or just forgot his meds?

A "merger" with GM or Ford would be no more a merger than Chrysler and Daimler was, and we all know how that worked out!

http://www.autonews.com/article/2015...-ford-feasible
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Old 03-13-2015, 07:50 AM   #2
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How come nobody mentions Nissan?
Am I missing something?
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Old 03-13-2015, 10:43 AM   #3
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Originally Posted by steve_biegler View Post
Auto News is saying Sergio has said that a "Merger" with GM or Ford could be feasible. I'm not sure if he is really looking for a company to combine with, or see how much he can stir the pot, or has something else going on and saying these things to throw off the hounds, or just forgot his meds?

A "merger" with GM or Ford would be no more a merger than Chrysler and Daimler was, and we all know how that worked out!

http://www.autonews.com/article/2015...-ford-feasible
I'm going to go with the option that Marchionne is off of his meds....

A merger with GM would have made perfect sense in my opinion in 2009 but it makes no sense in the post Fiat/Chrysler world of 2015.

I'm not sure why Marchionne craves all of the press attention lately - it's a far cry from the days when he and Chrysler went into "hibernation" and left their NEWCO dealers twisting in the wind in 2009 and 2010.

Concerning an acquisition for FCA, as before, I think an argument could be made for Mazda and/or Suzuki or even Mitsubishi as mryan55 pointed out.

Concerning a larger OEM that would have a logical interest in merging with FCA - I can't think of one. Yes, a person could point to Honda and Hyundai/KIA and note that both of those OEMs have weak truck and SUV offerings but I think it would be far cheaper for those companies to develop their own products than it would be to buy FCA.
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Old 03-13-2015, 10:50 AM   #4
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How come nobody mentions Nissan?
Am I missing something?
I think Nissan is a great company and they build great products but in my opinion they're contaminated with their alliance with Renault.

At the risk of furthering my bias, I'd argue that the old Chrysler shares a lot in common with Nissan - they're both linked to a weaker foreign OEM that was destined to go out of business and now their future is mostly out of their control.
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Old 03-13-2015, 12:07 PM   #5
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I'd argue that the old Chrysler shares a lot in common with Nissan.
Yea.....Fred Diaz!!
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Old 03-16-2015, 01:03 PM   #6
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Yea.....Fred Diaz!!
That's true...

It's too bad we don't have more Nissan dealers on the forum - I'd love to hear what they think about Diaz and what changes he's been able to implement.

I've always had the impression that Nissan is a pretty tough OEM to deal with and they can be very demanding - especially given the overall value of their franchise.

Hopefully Diaz has been able to make some meaningful improvements.
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Old 03-17-2015, 04:58 PM   #7
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Default GM was thinking about buying Chrysler in 2006 and 2008

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OK, I don't think I've done a book report since Jr. High but I thought I'd share a quick overview of Bob Lutz's book - Car Guys vs Bean Counters.

Here are some topics Lutz reviewed in his book that I found interesting:
Lutz explained that when GM was at their prime in the late 60s and early 70s the Design Department had a tremendous amount of power within GM. Unfortunately, with that power came abuse and there were charges that some GM Design Executives were using corporate assets for personal gain. The solution was to send in the "Bean Counters" and it all went downhill from there.

Amazingly, Lutz indicated that GM actually had an excellent customer research department and they ran numerous "clinics" before they launched a new vehicle. GM knew the vehicles they were launching were sub-par but in most cases it was too late to change them or the brand managers didn't want to incur any extra costs fearing it would impact their bonus.

GM's designers were restricted by hundreds of rules which limited their abilities to bring fresh concepts to market. Before Lutz joined GM in 2001 GM purchased a Chrysler 300M and questioned the Design Department why GM could produce a car with the same level of design and functionality. The GM designers replied that the Chrysler 300 violated over 90 self-imposed GM rules that governed what the designers could do.

Perhaps the best example was the ashtray in a Cadillac model that shot-out like a child's toy when pressed. Lutz noted that an Acura that was being reviewed had an ashtray that glided out and gave the perception of quality. When challenged the GM engineer who created the Cadillac ashtray beamed that his design was the only one that met GM's standard - even the ashtrays for Mercedes failed the test. What was the GM standard? - The ashtray still had to function if the interior temperature was 40 degrees below zero.

Perhaps most distressing to a Chrysler loyalist like myself who has always been a big fan of Bob Lutz, Lutz revealed that GM wanted to buy Chrysler - once in 2006 and again in 2008.

Lutz indicated the deal to buy Chrysler fell apart in 2006 because Cerberus was willing to pay more money and the in 2008 the GM Board of Directors killed the deal fearing more problems with the UAW.

To his credit, Lutz had the vision that a GM/Chrysler combination would be just like the Chrysler/AMC integration where the new company takes the best of both companies and gets rid of the worst parts.
Overall, I really enjoyed the book and would recommend it to anyone who's ever been a fan of Bob Lutz. There are still a number of fascinating examples in the book I haven't shared including Lutz's assessment that GM's product pipeline actually had vehicles worse than the Pontiac Aztec in development before his arrival.
I ran across this post that I made about 2 1/2 years ago and had forgotten about the comments Bob Lutz made in his book concerning GM's interest in buying Chrysler. (I highlighted the relevant excerpts above in blue.)

While I still think Marchionne is just blowing smoke about a potential merger with GM or Ford, it is interesting to think about how close a GM/Chrysler merger may have been to happening.
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Old 05-26-2015, 05:43 AM   #8
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Fiat Chrysler Automobiles (NYSE:FCAU) CEO Sergio Marchionne made a direct approach to General Motors (NYSE:GM) about a merger last March, according to the New York Times.An e-mail from the CEO pitched the strategic advantages of a combination of the two auto heavyweights, but was rebuffed by GM.In the last month, Marchionne made a highly entertaining trip to Silicon Valley and has been backing the company's 25-page thesis titled "Confessions of a Capital Junkie in which it highlights the benefits of automobile industry consolidation.Previously: Fiat Chrysler Automobiles peers through the looking glass (April 30)Previously: Sergio Marchionne goes to Silicon Valley (May 11)
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Old 05-26-2015, 11:56 AM   #9
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Fiat Chrysler Automobiles (NYSE:FCAU) CEO Sergio Marchionne made a direct approach to General Motors (NYSE:GM) about a merger last March, according to the New York Times.An e-mail from the CEO pitched the strategic advantages of a combination of the two auto heavyweights, but was rebuffed by GM.In the last month, Marchionne made a highly entertaining trip to Silicon Valley and has been backing the company's 25-page thesis titled "Confessions of a Capital Junkie in which it highlights the benefits of automobile industry consolidation.Previously: Fiat Chrysler Automobiles peers through the looking glass (April 30)Previously: Sergio Marchionne goes to Silicon Valley (May 11)
As I understand it Barra wouldn't even agree to a meeting with Marchionne after he sent her an email.

Marchionne would have to be delusional to think that Ford or GM would have any interest in merging with FCA at the height of the market. When the industry tightens and FCA's profits worsen that's when a deal will become attractive - and it sure as hell won't be on Marchionne's terms.

The Silicon Valley trip has Marchionne looking a bit odd too - especially when he refers to Elon Musk as a "kid." Granted, I've never been a fan of Marchionne but I'm wondering if he's forgotten to take his meds???
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Old 05-27-2015, 07:38 AM   #10
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http://www.autonews.com/article/2015...es-merger-talk

Appears Sergio hasn't given up.
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Old 05-27-2015, 07:27 PM   #11
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Nobody could make up a story like this entire Chrysler saga from 2009 to now. Poor little Sergio.
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Old 05-27-2015, 07:58 PM   #12
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So Fiat, bleeding cash, sell out to GM. GM, looks at cooked books and wants out of the purchase. GM pays Fiat $6 billion, to be let out of the sale. GM asks USA for loan to get over the Democrats Mandated order to to banks and finance companies, to loan money to deadbeats, Democrats say "No, you better go bankrupt, and we, the. democrats, will protect our unions brethren." Chrysler, being owned by Canadian "breakup artists", sees free money for asking, and sends pawns in to go a beggin. Democrats see additional opportunity to make the best from a crisis, and throws Chrysler into bankruptcy. Fiat sees free money, and asks "Why not us?" And petitions the USA to loan them the $$$ to "buy" the good parts of DCX, ie, "JEEP", and acquires technology not available, ( or needed) in Europe. All ride the wave of low interest rates back to "prosperity". Fiat sees, the best time to sell is when the market it high, and starts knocking at doors. Next....
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Old 06-09-2015, 05:16 AM   #13
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Fiat Chrysler Automobiles' (NYSE:FCAU) Chief Executive Sergio Marchionne is reaching out to hedge funds and other potential allies to prod General Motors (NYSE:GM) into a merger, WSJ reports.Marchionne has been emboldened by recent successes of activist investors at GM and sees them as a means to consolidate the fragmented auto industry.So far, GM has resisted all of Fiat Chrysler's entreaties, including a merger appeal to Chief Executive Mary Barra earlier this year.Previously: GM passes on merger offer from Fiat Chrysler (May. 23 2015)
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Old 06-12-2015, 10:02 AM   #14
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Originally I thought Sergio was just testing the waters but this is starting to sound serious. I guess the money didn't last as long as he thought!


http://www.autonews.com/article/2015...on-report-says
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Old 06-18-2015, 04:55 AM   #15
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Another Serigo effort to merge? http://www.reuters.com/article/2015/...innovationNews
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