Spurned By GM, Fiat Chrysler Seeks New Partner

Sergio Marchionne (Credit: Fiat Chrysler Automobiles)

Attention automakers of the world: Fiat Chrysler Automobiles is available and on the hunt. Not that long ago, CEO Sergio Marchionne made an aggressive play for a merger with General Motors, something GM CEO Mary Barra basically laughed at.

The problem for FCA is that creating cars that don’t pollute as much and can drive themselves is a little on the expensive side. Not all of its compadres in the auto industry view teaming up as the way to handle these upcoming challenges. GM apparently has the resources to go it alone, maybe with some strategic partnerships here and there. Volkswagen had a plan that’s quickly unraveling.

According to a recent report in Automotive News, Marchionne isn’t as eager to find a partner for FCA, or he’s trying to not seem desperate. He said that the company is “in relatively decent shape.” But losing Ferrari and trying to replace it with a pumped up Maserati, while also dealing with delays for the new Alfa Romeo products rollout, seems to indicate that FCA is in a bit of a bind.

Don’t expect FCA to try courting any other automakers publicly again. Needless to say, the rejection from GM not only was a letdown but also an embarrassment, like a guy proposing to his new girlfriend at a big sporting event, only to be told “no” for all to hear.

Also, don’t expect to see any other brands spun off. The Ferrari incident appears to be a one-time thing, but even the mighty Jeep can’t even begin to match the brand power of the Italian prancing horse. Both Maserati and Alfa Romeo should swell in size in the near future, while Jeep will add the Grand Wagoneer – a key product that will come with some fat profit margins. For now, it appears that the Chrysler brand will continue on in its pathetic state.

At the moment, the plan is for FCA to push on with its current plan, at Marchionne said as much to Automotive News. With how quickly things are shifting in the industry, a suitable partner could emerge in the next few years, or FCA might figure out how to manage completely on its own.