Fiat Chrysler Automobiles CEO Sergio Marchionne has ruled out a hostile takeover of General Motors, The Detroit Free Press reports.
The Italian-Canadian businessman had sent a letter to GM CEO Mary Barra earlier in the year suggesting the two automakers should consider merging, however despite Barra shooting the proposal down, Marchionne says a hostile takeover is out of the question.
“We have been publicly rebuffed, we have been rejected and you cannot force these things. I don’t want to,” he said. “At the moment, we have no intention to do anything hostile.”
It is the belief of Marchionne that the automotive industry must one day consider consolidating in order to account for rising research and development costs and sinking profit margins. GM rejected the merger as it was “not in the best interest of General Motors’ shareholders,” Barra said in September.
Marchionne’s comments came following a shareholders in meeting in Amsterdam in which FCA officially approved the planned spinoff of Ferrari. The automaker sold a 10% stake in the supercar manufacturer through its IPO in October and will sell its remaining 80% share off in the first quarter of 2016.