Fiat Chrysler CEO knocks down VW Group merger chatter
Warning of "unrealistic dreams," Fiat Chrysler's CEO is deflating the balloon that has been floating about a possible merger with Volkswagen Group.
CEO Sergio Marchionne shifted his tone on a possible merger Friday during discussions at Fiat Chrysler's annual general meeting in Amsterdam, according to media reports.
Marchionne, who has long touted the need for industry consolidation, in recent months has raised the prospect that Volkswagen could come calling.
"We need to be very careful that we don’t start unrealistic dreams about consolidation as we are on our way to achieve historically important results and a debt-free position. We are not at a point of time to discuss any alliance," according to a Bloomberg report of Marchionne's comments.
Marchionne had indicated that a merger of the two automakers might be attractive for Volkswagen after PSA Groupe purchased Opel from General Motors in March. Speculation only increased after VW CEO Matthias Muller reportedly said he would not rule out talks with Fiat Chrysler.
Instead, Marchionne said the two companies are not in talks and he is not seeking a deal with Tesla, according to Bloomberg.
In addition, Reuters noted that Fiat Chrysler Chairman John Elkann said he is "not interested in a big merger deal."
The possibility of a merger with VW was not the first time Marchionne has talked about a tie-up with another automaker, but he has also said that a merger need not happen during his tenure. He plans to step down from his role as CEO in 2019.
GM has spurned Marchionne's previous overtures for a merger between the two automakers.
GM spokesman Pat Morrissey reiterated that last month in comments to the Free Press, saying "GM’s board examined this a long time ago and concluded it made no sense for the company’s customers, shareholders or employees. That is still true today.”
Even without a possible merger on the horizon, FCA is involved in a key partnership involving autonomous vehicles, supplying Chrysler Pacifica Hybrids for Waymo, formerly known as Google's self-driving car project.
GM has spurned Marchionne's previous overtures for a merger between the two automakers.
GM spokesman Pat Morrissey reiterated that last month, saying "GM’s board examined this a long time ago and concluded it made no sense for the company’s customers, shareholders or employees. That is still true today.”
Even without a possible merger on the horizon, Fiat Chrysler is involved in a key partnership involving autonomous vehicles. It is supplying Chrysler Pacifica Hybrids for Waymo, formerly known as Google's self-driving car project.