Published on : Sep 16, 2015
General Motors announced a tie-up with the Fiat Chrysler. However, the tie-up was not really in GM’s best interest. Instead it wanted to pursue the investments in new technologies on its own.
CEO of Chrysler said earlier this month that looking for a merger with GM was a high priority for the company. Such a tie-up would be the best planned option for the competitors in the US.
This issue has been studied in great detail, with both external experts and internal resources. However, it is not in the best interest of the GM shareholder, told Mary Barra to the reporters on the sidelines of the Frankfurt auto show.
Moreover, earlier this month GM’s board snubbed a merger proposal from the Italian-American auto manufacturer too. This hasn’t stopped the CEO of Chrysler from wooing what he addresses as ‘ideal partner’. He seeks to reduce the number of players in the industry and share the limited costs of building intelligent and greener cars.
Barra also added that GM was focused on investing in new connectivity and technologies. It could afford to do it alone. The company proposed an illustration of the redesigned Opel Astra vehicle at the show in this context.
GM is working hard in doing everything to put connectivity in the vehicles, looking at the upcoming technologies that are needed in vehicles, and working on all the propulsion technologies. The company has never discussed any possible tie-up directly with Chrysler after rebuffing the merger proposal sent via email earlier this year.
Barra in a separate event on Monday commented to the event that GM investors had not said much in the past recent weeks, despite the repeated attempts to get the deal done. She also commented that no follow-up requests were received from Chrysler since his initial email.
Italian PM also hopes that Marchionne closes a deal with GM soon.