Fiat Chrysler Automobiles on a partner hunt

Sergio Marchionne, CEO, Fiat Chrysler Automobiles; has reportedly been on the lookout for partnership candidates. The possibility of a merger has already been stonewalled by General Motors and Toyota. Now, FCA may be looking at a merger with PSA Peugeot-Citroen.

While recent developments suggest that FCA is still trying to get GM on board, Peugeot’s shares saw a rise after a report suggested the possibility of a merger. So why is FCA on the lookout for a partner? The main reason cited by Marchionne is the need to consolidate and reduce costs across the spectrum, citing the great expenses that need to be borne by automotive companies, in order to cope with ever-changing global norms. He mainly highlighted the costs associated with new emission and safety technologies.

Volkswagen is also said to be one of the candidates on the FCA CEO’s scanner, though many believe VW would be more interested in a takeover than a merger. As it stands, PSA Peugeot-Citroen seems to be the most likely partner. However, without an official confirmation from any of the brands involved, only time will tell how this matter progresses.

Source: Autonews