Fiat Chrysler chief backs off lobbying of GM execs - The Detroit News
Fiat Chrysler chief backs off lobbying of GM execs Fiat Chrysler Automobiles NV CEO Sergio Marchionne has backed off his efforts to merge with crosstown rival General Motors Co. , though he remains committed to the industry’s need to consolidate... ws/1J0TRLN Fiat Chrysler Automobiles NV CEO Sergio Marchionne has backed off his efforts to convince General Motors Co. executives that a merger is in both companies’ best interests, though he remains committed to the industry’s need to... This spring, Marchionne sent a letter to GM CEO Mary Barra about a potential merger, which Barra said in June was vetted by management and the board and ultimately turned down to focus on GM’s own improvement plan. GM is the third-largest automaker globally and has lots of scale, while FCA is the seventh-largest automaker. It lags other automakers in alternative powertrain development such as electrified and hybrid vehicles that are needed to meet upcoming strict federal fuel economy regulations. The company also is behind others in its sales efforts in China, the world’s largest market. FCA spent about $3 billion last year on research and development compared to $7. 4 billion spent by GM. For months, the 63-year-old Marchionne has been touting the need for the industry to consolidate to save billions on research and development... Source: www.detroitnews.com
