Fiat Chrysler Automobiles CEO Sergio Marchionne has been touting the benefits of a merger with another automaker for nearly a year, saying industry consolidation is inevitable.
Now John Elkann, the automaker's chairman, is making his own attempt to lure a buyer or merger partner.
Elkann underscores the benefits of a merger in letter sent to shareholders of Exor, an investment fund that owns 29% of the automaker.
Elkann, the great-grandson of the founder of Italian automaker Fiat, wrote that the company believes it could save $10 billion annually in a merger with one of the industry’s “big guys,” signalling that Fiat Chrysler continues to explore a multi-billion-dollar deal with other automakers.
Elkann's comments come one year after Marchionne first presented his thesis that the cost of stricter regulations along with the escalating cost of developing the technology for self-driving cars and energy efficient cars makes industry consolidation inevitable.
Elkann, who also is chairman of Exor, said automakers are avoiding that inevitable trend. The letter comes one day before FCA's annual shareholder meeting Friday in the Netherlands.
FCA lags behind when it comes to developing both hybrid and electric vehicles as well as self-driving vehicles. FCA has been selling an electric version of the Fiat 500 for several years, but only on the West Coast. The automaker is planning to launch a hybrid version of the Chrysler Pacifica later this year and has said it has other hybrids on the way.
Marchionne also has been rejected as a partner by General Motors -- the company he has said would be FCA's best partner. Despite that, Marchionne has continued to seriously explore other possible partnerships.
