US: FCA chief pursuing investors for GM merger support - report
Marchionne seems determined to find a partner for FCA and has apparently concluded that GM is a very good candidate for some cost sharing
Fiat Chrysler (FCA) chief Sergio Marchionne has reportedly approached investors to assist his efforts to open up a dialogue with General Motors over a potential merger.
The Wall Street Journal reported that the approach to 'activist investors' may also be a tactic used with a European manufacturer and cited anonymous sources 'familiar with the matter'.
Reports suggest that Marchionne was recently rebuffed by top executives at General Motors after he made contact seeking to open a dialogue between the two to discuss collaboration.
Marchionne has been very vocal in his belief that the auto industry will see more consolidation and is believed to be looking for partners for FCA in order to share the rising costs of meeting tighter industry regulatory standards and raise operating margin.
GM has some history of significant shareholder dissent from boardroom policy. Back in 2006 Carlos Ghosn sought to add GM to the Renault-Nissan Alliance and had the support of GM investor Kirk Kerkorian in a boardroom battle. However, the initiative was eventually rejected by GM's board.