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Discussion Starter · #1 ·
Detroit Free Press reported in an article this weekend that "FCA CEO Sergio Marchionne issued an urgent plea for industry consolidation last week but it appears few, if any, companies are interested." In the article, DFP stated "For his part, Marchionne, known for his prowess as a consummate deal maker, insisted he was not putting a for sale sign on FCA. After all, it is now the seventh largest automaker. He also said he's not trying to cap off his career with a final mega deal."

Interestingly, this article makes reference only to Western and Japanese car companies and completely avoids talking about India and China. The Guangzhou Automobile Group stated in 2011 on this page that they want to ''actively participate into domestic and foreign market competition and cooperation". Fiat already has an established relationship with the Guangzhou Automobile Group, first by licensing the Alfa 166 platform for creating cars under their own label (see this thread), then by using them for the distribution of Fiat 500 and Jet 120 vehicles in China (see here).

I mentioned in the past that I believe Marchionne was hired to divest the passenger car division from the Fiat group and that I believe it is very likely that Fiat-Chrysler will be sold to a Chinese company in the 2016-2020 time frame because of the global distribution network (see here). These wheels may have started roll with Marchionne's call for a consolidation. I don't care much whether FCA calls the divesting of the passenger car division a merger, acquisition or consolidation. Most of the time, words like these are chosen only for political and cultural correctness at any given time -- and for helping investors to shift their investments with a minimum amount of friction.
 

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I am not sure he has a plan except perhaps not to be the CEO of FCA when it declares bankruptcy. That would tarnish his legacy. If he can broker a merger he can retire on a "high note."
 

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I agree with Sergio Marchionne for wishing to share development costs of new autos with other manufacturers since these costs are moving ever upward with all this complexity of modern cars especially in electronics.
In any case I hope that FCA is not sold and that the new Alfa Romeo range which are set to be premium with the hoped for increased profits per unit are successful and deliver the product enthusiasts wish with spirit and passion because actually in my humble opinion Italian cars I have owned especially alfas have always given this feeling to me.
 

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Discussion Starter · #4 ·
The notion of sharing development costs isn't new: Alfa did that already starting in 1978 with the Type Four Chassis, shared by the Alfa 164, Fiat Croma, Lancia Thema and Saab 9000.
 

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Well FCA is not sharing costs with anyone at present for development of its cars and I am guessing it has a lot to do also with economies of scale if sharing with another brand.
Anyhow Fiat are reduced to mainly the 500 and panda and alfa the mito and giulietta (4c production is so small as to be negligible) and there are so many new alfa romeo cars to come (to compete in every segment with BMW as I understand it) that I guess FCA are looking at all possibilities to reduce those development costs
 
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