Fiat Chrysler CEO Says Joining Forces with GM or Ford Is ‘Technically Feasible’
We’ve all played the game Monopoly, and we’ve all hated it. Typically in the game, however, that hatred stems from the fact it never freaking ends. But in the real world, everyday average Joes like us don’t really like monopolies because they can lead to higher prices, lower quality products, and a lack of innovation in the industries that they kill. But who the hell cares, thinks Sergio Marchionne, Fiat Chrysler Automobiles’ (FCA) CEO.
For a long time, Marchionne has firmly believed that only the strongest, largest automakers will survive in the future, and the Suzukis of the world will fall by the wayside. (We’re looking at you, Mitsubishi.) While this wouldn’t exactly be a monopoly, as there would still be the big players competing (like Ford, GM, Toyota, and Daimler), it would mean significantly fewer competitors; right now, there are about 35 major automakers left in the industry.
Because Marchionne is fully preparing for this bloodbath, he has shown interest in perhaps forming a mega-company with Ford or GM. It’s not too big of a surprise, as the CEO recently merged Fiat and Chrysler Group together to form Fiat Chrysler Automobiles. While nothing formal has been set in stone, Marchionne did tell Bloomberg that a combination with GM or Ford would be “technically feasible.”
The only hurdle? Ford and GM both essentially laughed at the notion.
For now, there is “nothing substantive,” but Marchionne is a pretty crafty businessman who tends to get what he wants, so we’ll see where this goes.
News Source: Bloomberg