Sergio Marchionne can’t catch a break.
Toyota, one of the car makers in the world, also said no to any possible merger on Thursday, Bloomberg’s Keith Naughton reported:
With annual global sales of 10 million vehicles, “we have enough scale right now to do what we need to do,” Jim Lentz, CEO of Toyota Motor North America, told reporters Thursday at the automaker’s technical center near Ann Arbor, Michigan. “There really would be no advantage for us” to combine with Fiat Chrysler.
Marchionne has been rebuffed by General Motors Co. as he seeks to consolidate with another automaker to better afford the high cost of new technology in cars. He has said he prefers a friendly deal, particularly with a company that has a similar product range.
Why does FCA want to merge with another manufacturer, despite it’s stock doing very well following a 2014 IPO? It’s all about globalization.
Marchionne maintains that that there are redundancies in the global auto market, and consolidation would mean less companies making essentially the same vehicles.
Marchionne was expected to step down after the initial merger between Fiat and Chrysler, but he stayed on through the IPO last year, even receiving a pay raise.