Sergio Marchionne admitted that he will stop trying for a new merger and will instead focus on how to make FCA more competitive.
The Italian-Canadian executive has been vividly campaigning for a merger with GM for the most of last year, without the slightest hint of success. In fact he revealed on Monday that he met Mary Bara less than a month ago in Washington: “I don’t think I will have another coffee with her. It won’t happen again in the future,” said FCA’s boss.
GM’s board had vetted and rejected Marchionne’s proposal earlier in June, with the executive continuing to apply pressure, up until now as it appears. He also said that he received proposals from “non-ideal” partners and that he’s planning to concentrate on achieving his ambitious targets in order to make Fiat-Chrysler stronger, including the increase of deliveries by about 50 per cent in the next three years.
The separation of Ferrari from FCA raised around 4 billion euros ($4.4 billion) for Fiat-Chrysler and increased the combined value of the companies, including Ferrari.
Now, it’s time to start working on the announced 48 billion-euro expansion plan, with Sergio Marchionne already trying to deal with slowing demand in China and the drop in Brazil’s market, which lead him to delay the new models planned for Alfa Romeo and Maserati and focus more in the mainstream market with Jeep and Fiat.
“It’s time for FCA to bring in a car executive to run the company,” Erik Gordon, business professor at the University of Michigan said to Bloomberg. “There is nothing left for Marchionne to do that he is good at.”
The 63-year old plans to retire at the end of 2018 and he still faces a huge task. “We went back to concentrate on the 2018 plan which would boost Fiat Chrysler’s value and its position in a deal,” said Marchionne. “The difference is that it won’t be me to do it. It will be someone else’s duty.”
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