Reports are indicating that Fiat’s CEO, Sergio Marchionne, is not planning on stepping down until he completes a mega deal and he is working on a completing a mega deal so as to cement his legacy before he steps down in 2019, sources that are familiar with the situation told Reuters news agency.
Fiat, which currently is the world’s seventh largest car maker and has one of the highest debt piles in the automotive industry, has failed to even establish its brand in Europe with many predicting that it will burn cash for years so as to revamp its Alfa Romeo brand which has for some time now been neglected.
According to several sources there has been a growing interest on General Motors by one of the founder’s of Fiat as well as Marchionne given that the U.S. automotive market has played a key role in shaping the FCA for years now. That said it’s good to note that GM in itself is very strong in Asia where FCA has been weak and the carmaker is working on ensuring that it expands to Europe following a failed attempt to tie up with PSA.
A banker close to PSA Peugeot Citroen and General Motors said that, "Marchionne has clearly planted the 'for sale' banner," adding that, "He's been sending out feelers everywhere in an attempt to create optionalities, but so far no one is biting."
Last month, Marchionne, who has in the past few months given hints that he wants to parent up with other companies so as to kick start consolidation in the automotive industry so as to share capital costs as well as fund developments, said that a tie-up with Ford and GM would be “technically feasible.”