Fiat Chrysler Automobiles boss Sergio Marchionne is reportedly seeking a merger with General Motors, but GM officials haven't been receptive to this idea. According to him, this would result in sharing of plants, underpinnings and infotainment systems leading to a much more cost-efficient product.
In a recent interview with Automotive News, Marchionne stated that if combined, GM and FCA would generate an EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) of $ 30 billion.
As for GM, they have rejected all merger proposals. In June, GM boss Mary Barra had said that Marchionne had emailed her with proposals for a merger, but that the GM board gave "strong support" to the company continuing on its own path.
Industry analysts have warned that the merger could prove to be “an operational and management nightmare” but are confident of Sergio Marchionne's ability to make it work.
Jay Patil
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