Mar 09, 2017 11:10 AM EST

Fiat Chrysler CEO Not Giving Up On General Motors Merger

Fiat Chrysler Automobiles CEO Sergio Marchionne may not be in favor of General Motors' decision to sell its European operations. However, the Fiat Chrysler CEO is still open to a potential merger with the U.S. carmaker, according to a report on USA Today.

In a bid to leave Europe after the United Kingdom voted to exit the European Union, General Motors announced that it is selling its European Opel and Vauxhall brands to Peugeot parent company PSA Group, Jobs & Hire previously reported.

Marchionne said he does not believe that the return on invested capital that General Motors will get from the sale of Opel and Vauxhall justifies the terms of the transaction. He acknowledged that General Motors is looking to achieve better profitability, but he believes that General Motors is throwing out all the potential benefits from the European operations.

The Fiat Chrysler CEO, however, is not deterred from his plan to make a deal with General Motors. He expressed willingness to continue wooing General Motors to close a deal.

CNBC reported that Marchionne had also talked about Volkswagen at the Geneva Motor Show. He said that Matthias Mueller is putting on a brave face for saying that he was not really worried about the deal between General Motors and PSA Group.

Although he still wants a tie-up with General Motors, the Fiat Chrysler CEO said the transaction may or may not happen during his tenure. Marchionne is expected to resign from his CEO role in 2019.

Back in 2015, Marchionne informed General Motors that he thinks that a merger with Fiat Chrysler will be beneficial for the shareholders of both companies. The transaction could generate billions in cost savings for both companies, according to the Fiat Chrysler CEO. However, General Motors CEO Mary Barra rejected his proposal.

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