A merger among automotive players may be the need of the hour but there is no further development about Fiat Chrysler Automobile’s (FCA) intention of joining hands with US automobile major General Motors (GM), said FCA CEO Sergio Marchionne.
"The (need for) consolidation remains valid, no one has questioned its economic rational," Marchionne Marchionne told Reuters, while speaking on the sidelines of the launch ceremony of its popular Fiat 500 hatchback. Marchionne confirmed that there was nothing new on FCA's desire for a merger with GM.
Earlier, General Motors (GM) had reportedly rejected an offer for merger from Fiat Chrysler that might have translated into an automotive behemoth.
An email, detailing how such move would aid in cutting expenses, was sent to GM CEO Mary Barra in March but it failed to evoke the latter's interest. Consequently, a request for a meeting was also spurned by the GM boss, the New York Times had reported.
Refusing to give up, Marchionne tried to drum out support last month for collaboration among automotive firms, saying that sector was spending $2.2bn weekly towards new vehicles.
He had presented his arguments in favor of sharing the cost of new technology, which finds its application in the autonomous car, through a merger.
