What Do You Think Of The Idea Of A GM-Fiat Chrysler Merger?

Industry News / 63 Comments

It's not totally out of the question.

Just a couple of weeks ago, Fiat Chrysler CEO Sergio Marchionne emailed GM CEO Mary Barra with a proposal to merge their companies. Marchionne is convinced that in order to survive in the long-term, even major automakers will need to consolidate. Doing so will dramatically reduce costs in just about every aspect of the car making business, especially in today's global economy. That's his logic, but Barra and crew don't see things that way, at least that's what was said publicly. But Marchionne isn't giving up.

According to a new report from Automotive News and the Wall Street Journal, "Marchionne is now reaching out to hedge funds and activist investors to help persuade GM to agree to a merger." The question now is whether anything will come from this? Will investors respond to this proposal in kind? This could be the start of something very interesting.

Source Credits: www.autonews.com

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