Rare alliance successes share key traits - Automotive News
COMING NEXT WEEK: Analyst Arndt Ellinghorst says Fiat Chrysler CEO Sergio Marchionne is "running a company which is probably the most challenged within the global industry. " So is Marchionne's "Confessions of a Capital Junkie" just a fancy way of putting FCA up for sale. Marchionne says no. Neither is it "an excuse for FCA's current ranking in the automotive food chain," he says. Fiat Chrysler Automobiles boss Sergio Marchionne, believing automakers are burning too much capital and earning too little in return, has called on the industry to consolidate to head off disaster, and has sought talks with GM. The truth is some... What makes some mergers or alliances work. One overlooked and underestimated factor can be found in the turmoil Press glimpsed in those nascent GM-Chrysler discussions seven years ago: When merger partners have overlapping operations, the drive to wring out costs often results in a fight... Vast overlaps in operations are often the reason mergers appear to make so much sense. That's what has some, including former GM Vice Chairman Bob Lutz, cheering the prospect of a GM-FCA alliance -- a combined company would be able to consolidate two. Source: www.autonews.com
