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GM CEO rejects Fiat Chrysler merger

Barra says GM has its own economies of scale.


June 9, 2015
by ASSOCIATED PRESS

DETROIT — General Motors CEO Mary Barra says the company doesn’t need to merge with Fiat Chrysler to take advantage of economies of scale in building cars.

She told reporters before the company’s annual meeting that Fiat Chrysler CEO Sergio Marchionne e-mailed her about merging, but the proposal was dismissed by the GM board.

Barra says GM is working with Ford on transmissions and Honda on hydrogen fuel cells and will look at other opportunities. But she says GM expects to sell 10 million vehicles this year, and is big enough to use its own size and scale.

Marchionne has been pushing for consolidation of automakers, saying the industry wastes capital developing engines, transmissions and other parts that buyers don’t care about. But he says no companies have agreed to merger talks.

2 Comments » for GM CEO rejects Fiat Chrysler merger
  1. Doug Geddes says:

    Who would want to merge with them. Both Fiat and Chrysler have always made junk. Just look at Consumer’s Report.

  2. Joe says:

    yes…”junk”…Ferrari is junk? Boy you really don’t know what you are talking about do you?

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