FCA’s Marchionne Open To Tie-up Talks, Just Not Yet
Fiat Chrysler Automobiles has announced that the automaker will be ready to entertain talks of a takeover by any other automaker but only after it completes its current plans for growth in 2018. The company reportedly had talks with Chinese automaker Geely last year but the talks did not go anywhere. Chairman and CEO of FCA, Sergio Marchionne, said at this week’s Geneva Auto Shows that the company wants to see what the growth plan will do for the company’s overall value before any talks begin.
Marchionne also said that any talk of the company being in talks about a takeover currently or talks about the company making any acquisitions this year are not true. The company is focused on their 2018 plan for growth which is perhaps why some are speculating that they are looking for ways to add companies to their portfolio. the reports that Geely’s Li Shufu being in talks last year with FCA were confirmed, although Marchionne said that Shufu just “showed up”. This insinuates that Shufu was not invited, something that not many in the industry believe was actually the case considering Shufu’s reputation. Shufu later bought a nearly 10% stake in German automaker Daimler for a reported $9 billion
While Marchionne is adamant that a deal is not in the works and will not be for at least the next nine months, he states that he actually favors a merger which flies in the face of his prior comments. No matter what happens in the coming months, most people believe that he is merely being tight-lipped and that several talks have been occurring in recent months.