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Here's why GM is giving Marchionne the cold shoulder

What's funny about an Automotive News story titled Why Won't GM Play Ball with Marchionne? is that few people outside of the Fiat CEO and his confidants understands why General Motors would play ball with the Italian company. Marchionne has said the combined entity could increase its annual earnings by $5 billion, but even an outside analyst that agreed with the number only conditionally agreed, saying, "If you assume some synergies and peak US cycle market conditions then, yes, they could get to 30 billion." However, that same analyst described Fiat Chrysler Automobiles as "probably the most challenged within the global industry." Not US industry – global. And before that revenue goal could be reached, the merged companies would need to wade through a bureaucratic swamp. Plus the executive, manufacturing, financial, platform, procurement, and international labor swamps, among a few others. This AN piece can be viewed as GM's response to Marchionne's assertions and offers of various "hugs." It lays out numerous reasons why a more focused and disciplined GM - one almost done with a major crisis and able to focus on its priorities - believes Fiat would be the desperate housewife in such a scenario. On the other hand, while AN doesn't have Marchionne's numbers, to get a better sense of where the Italian is coming from you should read more of the "Industry on Trial" special report. Not that it justifies the creation of a GM-FCA, but it shows that the capital expenditures considering the amount of automaker development overlap are, to the outside eye, staggering. Related Video: News Source: Automotive News - sub. req.Image Credit: Bill Pugliano/Getty Images Earnings/Financials Fiat GM Sergio Marchionne

Mopar boss promoted at FCA, still runs Mopar

Fiat Chrysler Automobiles is appointing Pietro Gorlier as its new chief operating officer for components. The change in title is effective June 30 and means that he reports directly to Sergio Marchionne. He already runs Mopar globally. Gorlier is replacing Eugenio Razelli, who is leaving the automaker. Even with the new position, Gorlier continues to be the boss at Mopar and retains his seat on FCA's global executive council, which is the company's top decision-making group. This is essentially one more step up the ladder for the Turin-born executive. Gorlier became CEO of Mopar service, parts, and customer care for FCA US in 2009 and took over that role worldwide in 2011. FCA announces new appointment Fiat Chrysler Automobiles N.V. (NYSE: FCAU / MI: FCA) announced today that effective June 30, 2015, Pietro Gorlier is appointed Chief Operating Officer Components reporting directly to the Chief Executive Officer Sergio Marchionne. Mr. Gorlier will also retain his current responsibilities as Head of Parts & Service (MOPAR) and member of the Group Executive Council. Mr. Gorlier will succeed Eugenio Razelli, who elected to leave the Group after several years of dedicated service. "We extend our sincere appreciation to Eugenio for his leadership and contribution to the organization" said Sergio Marchionne. Pietro Gorlier is Head of Parts & Service (MOPAR) and a member of the Group Executive Council (GEC) since September 1, 2011. He joined the Group in 1989 in Iveco and held various positions in Logistics, After Sales, and Customer Care before joining the automobile business in 2006 in Network Development. He holds a Master of Economics from the University of Turin. London, 18 May 2015 Related Video: News Source: FCA Hirings/Firings/Layoffs Chrysler Fiat FCA fiat chrysler automobiles fca us

Marchionne threatens to move Alfa production out of Italy

Fiat CEO Sergio Marchionne was unsurprisingly frank when asked by reporters about potential investments in Italian manufacturing for Alfa Romeo and Maserati, giving the Italian government the ultimatum, "Italy should decide if they want [Alfa Romeo's relaunch] to happen here or not as Fiat and Chrysler have several alternatives." Them's fightin' words.
Fiat's issue with the government stems directly from its courtroom clashes with the Fiom labor union. The two are currently embroiled in proceedings over longer shifts and shorter breaks, as Fiom has so far refused to sign a new contract citing revised labor laws that it says are anti-union.
According to Bloomberg, Fiat will be spending over $2.5 billion on development of eight new Alfas and six new Maseratis, in a bid to wrest some of the luxury pie away from BMW, Mercedes-Benz and Audi. But that's only going to happen if the government is willing to play ball and make life easier on Fiat.