According to Fiat Chrysler’s (FCA) CEO, Sergio Marchionne, the company has not had any offers nor are they working on any ‘big’ purchase deals currently.
Reuters reported that as the seventh-largest auto manufacturer worldwide, FCA is remaining focused on their 2018 business plan. This is as per a statement by Marchionne while at the Italian Formula One Grand Prix, which the company’s CEO attended recently. When he was questioned as to whether he’s been approached by another company or if an offer had been made, Marchionne replied with a ‘no’.
FCA share prices increased to record highs in August, after reports revealed there was some interest from China spurned for FCA or some of the company’s brands; moreover, the Chinese Great Wall Motor Co. Ltd. stated it was interested in Fiat Chrysler, but no deal had been signed nor meetings held with FCA executives.
The increase in stock was also due to ideas that FCA might divide from some of their units. Still, Marchionne stated that the company’s focused on purifying their portfolio, and units, like components businesses, might be removed from their group. The timeline around this process was stated to be late 2018. As Marchionne noted, FCA needs to clear activities within the group that aren’t linked to auto manufacturing (i.e. components businesses).
Marchionne was asked if an announcement would be revealed in 2017, and he stated that it was the board’s decision, and the next meeting will be held at the end of September. He went on to relay that this was not the right time for an Alfa Romeo or Maserati spin-off and that these brands require self-sustainability to ‘stand on their feet’ and make solid sales. He also claimed it would almost be impossible to see of spin-off of either brand, as both are too immature and in development phases. As he put it, it’s the wrong time and FCA is not in the condition to do so.
Marchionne did note that separating the two brands from FCA’s business makes sense and he did not take that off the table for the future, but believes that it will not happen under his leadership, which will continue until Spring of 2019. He noted it could be an opportunity that occurs in the future, but would roll out until after he is gone.
