Chrysler Fiat’s Elkann still hopes for merger with GM

John Elkann, the family chairman of Fiat Chrysler Automobiles NV, “isn’t giving up on forging a partnership with General Motors Co.,” although GM has rejected Fiat Chrysler’s merger proposal twice in the past four years,

the

Wall Street Journal

reported.

“A deal with GM, which has a market value nearly three times that of Fiat Chrysler, would be a crowning achievement for Mr. Elkann, who has transformed his family’s holding company by moving into new industries and diversifying outside of Europe,” the


Journal


article said.

Elkann is a fifth-generation member of the Agnelli family. The family’s holding company, Exor SpA, holds a 29% stake in Fiat Chrysler, the report noted. Earlier this year, Elkann appointed Fiat Chrysler CEO Sergio Marchionne as vice chairman of Exor, the


Journal


report said.

Analysts say Fiat Chrysler needs a merger, the


Journal


reported. “Its debt load is tops among big car makers, its profit margins are half that of bigger rivals, and it is now suffering troubles in Brazil and lacks a major presence in China,” the article said.

Agnelli family member Delfina Rattazzi told the


Journal


, “The family has never been closer and the support for John has never been stronger.” The family has invested €1.43 billion in Fiat since Elkann took the helm in 2004, the article said.

Elkann is waiting for another chance to approach GM but also “keeping the door open to another merger partner,” the


Journal


report said.  (Source:


Wall Street Journal


, July 7, 2015.)