Earlier this year, Fiat-Chrysler CEO Sergio Marchionne said securing a merger with fellow American automotive giant General Motors was a “high priority,” for the company. General Motors CEO Mary Barra, meanwhile, didn’t seem interested, saying the merger wouldn’t be in the best interest of her company’s shareholders.
Despite Barra’s lack of confidence in a FCA and GM merger, Marchionne remains confident it will happen. Financial services company Standard & Poor’s recently said a partnership between FCA and GM was “unlikely,” due to “significant integration and execution risks,” CNBC reports, but Marchione was quick to dismiss the analysis.
“With all due respect to Standard & Poor’s doesn’t understand anything,”Marchionne said.
The Canadian-Italian executive believes in consolidation within the auto industry as it would drive R&D costs down and create a more sustainable future for automakers. His focus on merging with GM lies with the fact that both companies have a multi-brand strategy and that they almost merged together 2008 when then-owner of Chrysler, Cerberus Capital Management, desperately wanted to sell the company.