An FCA merger may happen, but not anytime soon
Fiat Chrysler CEO Mike Manley took the reins last year after Sergio Marchionne passed away, and is currently working to bring the company’s five-year plan to fruition. To that end, FCA is investing $10.19 billion over the next five years. With that, the company aims to introduce new hybrid and electric vehicles in global markets, including the United States.
Manley revealed last week that FCA is open to alliance and merger opportunities with other manufacturers. That’s not necessarily anything new, as his predecessor also explored several merger opportunities. Under Marchionne, however, none of those mergers ultimately went through after FCA was formed in 2014. Reports suggest the company is considering PSA Group — comprising the Peugeot, Citroën, Opel and Vauxhall brands — as a candidate for a potential merger. According to a Bloomberg report last week, the French conglomerate has $10 billion in cash, and an ambition to push into global markets. PSA Group announced its intentions to re-enter the U.S. market within the next few years.
Not selling Maserati
Some reports also suggested FCA may sell off Maserati in its push to renovate its lineup. However, Manley made it clear there are no current plans to jettison Maserati. Chinese automotive giant Geely Automobile Holdings — which currently owns Volvo — has been reportedly eyeing the Italian marque. Right now, however, Fiat Chrysler is focused more on tightening emissions regulations. The company plans to electrify Maserati’s portfolio within the next five years.
Manley said of emissions compliance: “There are three options. You can sell electrified vehicles to balance your fleet. Two: You can be part of a pooling scheme. Three is to pay the fines.” FCA faced hundreds of millions of dollars in fines related to its emissions control software earlier this year.