Fiat Chrysler merging with General Motors can reportedly come up with $30 billion in cash per year. Apparently, the latter company is not interested in the proposal, and snubbed it.
Sergio Marchionne, CEO of Fiat Chrysler Automobiles, called for GM to stop disregarding the offer. During an interview with Automotive News on Monday, Marchionne said that maybe their rival company should consider the financial benefits they would get from merging, Fox News Latino has learned.
"I've gone through product by product, plant by plant, area by area, and I've analyzed them all," Marchionne said. "Look, the combined entity can make $30 billion a year in cash."
"Thirty," he continued. "Just think about that."
General Motors has reviewed the proposal and CEO Mary Barra refused the offer because the company is still in the process of confederating its operations following the 2009 bankruptcy.
"We have scale," Barra said. Then, she added that the company was busy merging with themselves. In a statement on Monday, GM said that their existing action plan will remain the best to create value for its shareholders, The Economic Times reported.
Fiat Chrysler's CEO is very persistent that he asked Barra several times to meet with him about the proposed merger, according to Chicago Tribune.. However, the request has been denied.
Many believe that General Motors is the bigger fish here. However, the move Marchionne is doing portrays a very bold attempt in reversing the natural order by pushing the takeover.
Meanwhile, there are reported offers from potential partners, but Marchionne said GM is still the preferred choice.
"There are people who are interested in doing deals. I'm not interested in doing deals with them ... because there's a better deal," he frankly said.
Fiat Chrysler Automobiles operates in two subsidiaries — FCA Italy (Fiat Group Automobiles) and FCA US (Chrysler LLC). FCA owns Ferrari, Maserati, Comau, Magneti Marelli and Teksid.
General Motors has five business segments. They are the GM North America (GMNA), Opel Group, GM International Operations (GMIO), GM South America (GMSA) and GM Financial.
The company manufactures automobiles in 37 different countries under some brands, namely: Alpheon, Chevrolet, Buick, GMC, Cadillac, Holden, HSV, Opel, Vauxhall, Wuling, Baojun, Jie Fang and UzDaewoo.
Fiat Chrysler's persistence is unquestionable, will this lead General Motors to give in?
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