Sergio Marchionne isn't taking no for answer from General Motors over merging with FCA. Reuters reports the automakers have brought investment banks for help to deal with this mess. Sources say FCA has brought in UBS, while GM has brought in Goldman Sachs and possibly Morgan Stanley. In the case of GM, the company has signed a letter of engagement with Goldman Sachs on advice with dealing with FCA.

 

"It would be inconceivable for General Motors not to be talking to any number of advisers about normal business operations, but I'm not going to list the issues one by one," said GM Senior Vice President Tony Cervone.

 

Cervone didn't confirm if GM had brought in Goldman Sachs or Morgan Stanley. FCA, Goldman Sachs, and Morgan Stanley declined to comment.

 

Does it mean that a FCA and GM merger is possible? Not at this time. But as Bernstein analyst Max Warburton said "Stranger things have happened, especially in bubbly equity markets."

 

Source: Reuters

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There is no way GM is going to agree to a merger. They just ditched several brands during the bankruptcy to eliminate overlap, they're not going to start platform and powertrain sharing with 4(?) more.

GM should offer Sergio 20 cents on the dollar per share to buy the company, then dump the junk brands, keep Jeep and any products they see as viable.   FCA will probably end up bankrupt anyways, 20 cents on the dollar is better than zero.

Don't be surprised if FCA tries to force it.....

when the stuff hit the fan in 09 and everyone was trying to save Chrysler but trashing Saturn and Pontiac, I said we needed to let all of Chrysler die.  I didn't predict this playing out then and now, but to me it was never a good idea to let Fiat take Chrysler when it was better to preserve what GM had.  It would have cost less and screw Chrysler fans IMO.

Don't be surprised if FCA tries to force it.....

In related news, Kirk Kerkorian just died a few days ago. GM should tell Sergio to get bent.

 

Don't be surprised if FCA tries to force it.....

In related news, Kirk Kerkorian just died a few days ago. GM should tell Sergio to get bent.

 

 

 

Would be nice.....

Kirk Kerkorian died  a few days ago?

Not to disrespect the deceased...but why do I keep on thinking that his business practices were on little on the shady side even though I have no clue about his business transactions...

 

I think its because I remember his stint with Chrysler and his staged takeover attempt...

Or his forced merger attempt with Renault and GM...

 

I tell Sergio myself to get bent...

 

Ey-O Sergio,

 

 

Vaffanculo

I will give credit where it is due: Sergio Marchionne was able to get Chrysler for next to nothing, and he was probably the driving force behind getting their interiors up to snuff. Also, he seems to give performance guys like Ralph Gilles a long leash.

But I still fear that if push comes to shove he will just starve Chrysler for cash to prop up Fiat.

I will give credit where it is due: Sergio Marchionne was able to get Chrysler for next to nothing, and he was probably the driving force behind getting their interiors up to snuff. Also, he seems to give performance guys like Ralph Gilles a long leash.

But I still fear that if push comes to shove he will just starve Chrysler for cash to prop up Fiat.

I, unfortunately, agree here.  Chrysler on it's own could be strong, but Fiat is dragging it down and a merger with GM is not the answer.  He has done his part, now he needs to go........

Chrysler on its own needed government bailout twice in 30 years.  Not exactly strong. 

Chrysler on its own needed government bailout twice in 30 years.  Not exactly strong. 

Bad decisions by management.  Do you before the Daimler fiasco that Chrysler was high in quality awards, made the most profit per any automaker, and some of the quickest turnaround in the industry from design to production?  Yes, Chrysler with it's sales and products right now ARE strong as they have been in the past.  The problem as usual, as it was with GM, as it was with Benz all those years their quality was in the tank, was and is management. 

 

Chrysler on its own needed government bailout twice in 30 years.  Not exactly strong. 

Bad decisions by management.  Do you before the Daimler fiasco that Chrysler was high in quality awards, made the most profit per any automaker, and some of the quickest turnaround in the industry from design to production?  Yes, Chrysler with it's sales and products right now ARE strong as they have been in the past.  The problem as usual, as it was with GM, as it was with Benz all those years their quality was in the tank, was and is management.  Framkly if it wasn't for the merger and the landslide after, hey would not have needed financial help or o file bankruptcy.  And FYI, the 09 Banruptcy did NOT happen when it was Chrysler alone...........

 

GM should buy FCA close down the FIAT, Abarth and other Italian brands. Sell Alfa Romeo to Chinese and be done with it.