Fiat Chrysler chairman John Elkann has echoed company CEO Sergio Marchionne’s statements in regards to a merger, saying the company could save $10 billion annually by “doing something with the ‘Big Guys,” The Detroit News reports.
Marchionne and FCA have been vocal about their desires for industry consolidation and last year attempted to convince General Motors of a merger, which the Detroit auto giant turned down. He has since moved on from the idea and is attempting to better set FCA up for a merger sometime down the road, but now Elkann has brought the idea back to the forefront.
In 16-page investor letter from Exor Spa, the investment company Elkann and his family control Fiat Chrysler through, Elkann explains how increasingly expensive technologies such as electrification will make it harder for automakers to be profitable going forward. Autonomous tech and other connect car interest will drive the costs up further, he explains.
“Boring old carmakers need to figure out how to make this profitable and guard against falling into the 1990 trap of ignoring that business while chasing profits in other parts of the value chain,” Elkann wrote.