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Marchionne ready to get tough with GM over merger

FCA CEO Sergio Marchionne absolutely refuses to let go of his dream of a merger with General Motors. With official discussions not happening, Marchionne now hints that a hostile takeover attempt of The General could be under consideration as a future strategy. In a massive interview with Automotive News, the boss explains why a tie-up with GM might be such a windfall for both automakers. By Marchionne's numbers, a merged GM-FCA would produce $30 billion a year in global earnings and 17 million vehicles annually. He claims these huge figures are based on analyzing plants around the world to find growth opportunities. So far, GM is refusing to sit down and look at the numbers, let alone even begin to negotiate. For now, Marchionne just wants to talk, but he's not against aggressive action, if necessary. He uses a bizarre metaphor in the interview to explain his feelings. "There are varying degrees of hugs. I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you. Everything starts with physical contact," he said to Automotive News. "An attack on GM, properly structured, properly financed, it cannot be refused," he said in the interview. Marchionne is looking for partners, too. The UAW's significant stake in GM could be a strong ally, and he's reportedly recruiting activist investors for more help. Selling Magneti Marelli and spinning off Ferrari would put even more cash in the war chest. Both sides also have banks at their aid. While Marchionne received positive replies from some of his "Plan B" partners, he apparently lost interest in working with them. "Are they the people I wanted to get the response from? The answer is probably not. There are people who are interested in doing deals," he said in the interview. News Source: Automotive News - sub. req.Image Credit: Paul Sancya / AP Photo Earnings/Financials Chrysler Fiat GM Sergio Marchionne FCA merger

Chrysler withdraws from UK market

Ford factors big in the British market, as does GM's Vauxhall brand. But one automaker that will be missing from the UK from here on out will be Chrysler, as the latest reports coming in from the British Isles indicate that the American brand is closing up shop. For the past few years, Chrysler has been selling a combination of its own models as well as rebadged Lancias to British customers, but has been having a tough time making a go of it. After just a few short years of lackluster sales, Chrysler UK ceased selling the Delta, and according to Auto Express, is now withdrawing the 300C and Grand Voyager as well. That leaves just the Ypsilon, which will reportedly continue on an on-demand basis if customers ask for it, but even that will end by 2017. The withdrawal of the Chrysler brand from the British market mirrors that of Lancia, under whose name the same models are sold in continental Europe but which is now being confined strictly to Italy, where it will similarly continue to sell the Ypsilon. Of course that doesn't mean that FCA is withdrawing from the British market altogether. The Fiat, Abarth, Alfa Romeo and Jeep brands will continue being offered in the UK, as will Maserati and Ferrari. Just don't expect to see many wing-badged Chryslers on the high street anymore – not that you would have until now. Last year the Chrysler brand reportedly sold fewer than 2,000 units in the UK, compared to the 10,000+ examples of just the Fiat 500 it moves there every month. Related Video: Featured Gallery 2012 Chrysler Ypsilon News Source: Auto ExpressImage Credit: Chrysler Chrysler Lancia chrysler ypsilon

Appeals court rejects GM's bid to remove judge from Fiat Chrysler lawsuit

A U.S. appeals court on Monday denied General Motors' petition to remove a lower court judge from its racketeering lawsuit against Fiat Chrysler Automobiles, but said the companies' heads need not meet to settle the issue. The Sixth U.S. Circuit Court of Appeals said U.S. District Judge Paul Borman abused his discretion by requiring GM CEO Mary Barra and FCA's head, Mike Manley, to meet face-to-face for reasons unrelated to the case, and without taking into account the risks of travel during the COVID-19 pandemic. The district judge's order for the parties to report back to the court in only eight days was also unwarranted, the appeals court said. Borman in June ordered Barra and Manley to meet by July 1, and later amended his order to allow other officials in their place. "We do not mean to say, however, that the district judge may not order a pretrial settlement conference and/or mediation in the normal course," the appeals court said in a filing. The court in June stayed Borman's order requiring officials from the two firms to resolve the lawsuit, and on Monday rejected GM's request for a new judge to oversee the case, saying Borman's desire for a quick settlement was "not so extreme" that he needed to be replaced. GM said in a statement it was grateful that the court had quickly reviewed and granted its petition for a writ of mandamus, that is, setting aside the requirement to meet. However, the company did not comment on the rejection of its request to reassign the case to another judge. GM sued FCA last year, accusing the Italian-American company's executives of bribing United Auto Workers union officials to secure labor agreements that put GM at a disadvantage. Government/Legal Chrysler Fiat GM