If GM and Fiat Chrysler ever merged, these brands would die - Yahoo Finance
New jobs data released. Plus, jobs, jobs, jobs. Hedge funds pounded. and global markets are being slammed on more disturbing economic news from China. Plus, the financial market jitters are putting a new emphasis on when Janet Yellen and other Fed policymakers will eventually decide to pull the trigger on an interest rate hike. And the recent stock selloff is pounding a favorite target of Donald Trump-- hedge funds. The CEO of Fiat Chrysler ( FCAU ) seems to be pushing hard to get General Motors ( GM ) interested in partnering or merging with his company, which would create the world’s biggest automaker and give Fiat Chrysler global scale it currently lacks. GM sees little to gain from such a deal, which is why Marchionne is trying to ally himself with hedge funds that have previously exercised influence over GM, according to the Wall Street Journal. Marchionne’s concern about his company’s vulnerability is justified. Fiat’s 2009 purchase of Chrysler gave the struggling Italian automaker a streamlined U. S. division that now provides the bulk of the company’s revenue and profit. Yet Fiat Chrysler is still only the seventh-largest global automaker, with a chronically weak home market in Europe, scant investments in new technologies such as electrification, and major shortcomings in its product lineup. Its profit margin is just 0. 8%, less than one-third that of GM and one-tenth Toyota’s, according to S&P Capital IQ. And that’s. Source: finance.yahoo.com
