It’s not just Fiat-Chrysler CEO Sergio Marchionne interested in knocking on automakers’ doors. The family who controls Fiat is also pushing for industry consolidation.
According to Reuters, John Elkann, chairman of FCA, said neither he or his family, “will not be an impediment to a good transaction for FCA.” Elkann belongs to the Agnelli family, whose grandfather Gianni controlled Fiat between 1966 and 1996. He runs the Exor holding company that still controls Fiat-Chrysler.
This news comes on the heels of story in The New York Times last week about Marchionne emailing heads of major automakers such as General Motors, news which Elkann confirmed to Reuters. GM’s CEO Mary Barra rebuffed Marchionne, however. But rumors of tie-ups with PSA Peugeot Citroen and other companies persist.
Marchionne has been not only a big advocate of auto industry consolidation, but also of leveraging Fiat’s best assets and discarding what doesn’t work. Since picking up the Chrysler Group in 2009 at the height of the automotive crisis, he’s given Alfa Romeo one last chance to be a viable premium brand, given Maserati much-needed product in an effort to dramatically grow sales and is spinning off Ferrari – all controversial, but potentially lucrative efforts.
Fiat-Chrysler is still valued at far less than GM, Ford and the other large automakers, and it still hasn’t produced the volume of vehicles even Marchionne says is needed to be a viable standalone company. But with the blessing of the Agnelli heirs, it looks like Sergio will press on.
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