Sergio is at it again

[300rag]

From the Bloomberg Business Report

Fiat Chrysler Automobiles NV Chief Executive Officer Sergio Marchionne intensified his call for an automotive mega-merger.
Consolidation needs to happen soon as the industry pours 2 billion euros ($2.2 billion) a week into developing new cars, Marchionne said in an interview Saturday at The Council for the U.S. and Italy. Potential partners including General Motors Co. have previously snubbed his advances.
“Intelligent people would agree that a remediation of that waste is useful,” Marchionne said, clad in one of his trademark sweaters on a steamy 30 degree Celsius (86 degrees Fahrenheit) day at the Venetian Lagoon. “The faster you do it, the better it is.”
Marchionne is pushing the auto industry to consolidate in order to share the cost of developing new technologies such as increasingly autonomous cars and more efficient engines. His pleas have fallen on deaf ears at other manufacturers, as rosy U.S. and European sales numbers leave carmakers feeling less pressure to restructure. Both GM and Ford Motor Co. have indicated they’re not interested.
The outspoken CEO, who uses four iPhones, including one with a Ferrari cover, appealed directly to investors after meeting skepticism from executives. He cited the 2 billion-euro weekly figure for development costs in an April 29 presentation for analysts called “Confessions of a Capital Junkie.”
He said on Saturday he’d still prefer to discuss a deal at the board level.
Marchionne’s search for a partner comes amid a push to boost Fiat Chrysler deliveries by more than half to 7 million cars in 2018. To finance that target, Marchionne plans to sell a 10 percent stake in Fiat’s Ferrari unit this year and distribute Fiat Chrysler’s remaining 80 percent holding in the sports-car maker to current investors at the beginning of 2016. Originally planned for the end of June, the Ferrari initial public offering now won’t happen before mid-October because of a tax ruling, Marchionne said on Friday. The delay isn’t linked to merger talks, Marchionne said.
If Fiat Chrysler does find a willing partner, he said he’d consider remaining as CEO past his announced 2018 departure date.
The shares rose as much as 1.7 percent, trading up 1.4 percent to 14.12 euros at 9:25 a.m. in Milan. Fiat Chrysler has gained 46 percent this year, compared with a 27 percent return including reinvested dividends for the Euro Stoxx Automobiles and Parts Index.

 

[furyus 67]

Efn money men! Nothing but crooks!! IDEA: let's pool our money on this forum and buy Chrysler back! The only return I'd be interested in is a ride in the turbine car!!

 

[saforwardlook]

Chrysler (or Fiat Chrysler Automobiles - FCA) hasn't kept pace with technology developments like its competitors, and now faces the reality that they still rely too much on large vehicles for sales revenue (Ram, Jeeps, rear wheel drive cars, etc). But the fuel economy standards facing all of industry requires new technologies and a lot of investment in light weighting, higher efficiency engines (like Mazda's Sky Activ system that even Toyota wants a part in), hybrids, electric vehicles and maybe even fuel cells. Chrysler has spent its cash on everything but new technology and Sergio, their CEO, has consistently scorned these new technologies. But while competitors like GM, Ford, Toyota, Nissan and so many more have developed these technologies consistently and are now making real progress, Chrysler has done comparatively little. Chrysler doesn't generate sufficient profits at current sales rates to make mass investments now in these necessary technologies, and Sergio is faced with a huge problem. He won't be able to meet future fuel economy requirements. He is now desperately looking for a partner that can make all his lack of planning and investment problems go away, otherwise he could well be out of business..................................again. Few other companies have sympathy it seems for his mistakes in technology investment and have shunned his overtures. In my view, the best thing FCA could do is tie up with Tesla and let their CEO Elon Musk run the show and let Sergio retire. Sergio has improved the product, but now he needs someone with more skills to take over.

 

[commando1]

Sergio is doubling down on Chrysler and preparing the finance world that he will use the Iacocca Card in several years.

 

[saforwardlook]

Sergio is doubling down on Chrysler and preparing the finance world that he will use the Iacocca Card in several years.

May well be. But I am doubtful the public, the government or anyone else will have the stomach for yet another bankruptcy bail out of Chrysler or any other car company. Their assets will likely be sold off in pieces - like Jeep goes to a Chinese automaker and Nissan picks up Ram, etc. I love Hellcats, but is that really where Chrysler should be spending their money when looking at the long term, government rules and the big picture?

 

[polara71]

People give him credit and I never saw it.....