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Fiat Chrysler's Marchionne is done talking about alliances

AMSTERDAM (Reuters) - Fiat Chrysler Chief Executive Sergio Marchionne rowed back on his search for a merger on Friday, saying the car maker was not in a position to seek deals for now and would focus instead on following its business plan. Marchionne had repeatedly called for mergers in the car industry and a tie-up has long been seen as the ultimate aim of his relaunch of Fiat Chrysler, which he is due to leave in early 2019 after 15 years at the helm. He sought a merger with General Motors two years ago but was rebuffed. Only last month he said Volkswagen - the market leader in Europe - may agree to discuss a tie-up with FCA in reaction to rival PSA Group's acquisition of Opel. Marchionne told the annual general meeting in Amsterdam he still saw the need for car companies to merge to better shoulder the large investments needed, but said Fiat Chrysler was not talking to Volkswagen. "On the Volkswagen issue, on the question if there are ongoing discussions, the answer is no," he said. He added, without elaborating, that Fiat Chrysler was not at a stage where it could discuss any alliances. "The primary focus is the execution of the plan," he said. FCA has pledged to swing to a 5 billion euro net cash position by 2018, from net debt of 4.6 billion euros at the end of 2016 - an achievement that Marchionne has said would put it in a better position to strike a deal in the future. Volkswagen, which is still reeling from an emissions scandal that hurt its profits, initially spurned FCA's approach. However, CEO Matthias Mueller said last month the group had become more open on the issue of tie-ups and invited Marchionne to speak to him directly rather than with the press. Fiat Chrysler Chairman John Elkann underlined the message that finding a merger partner was not a priority. "I'm not interested in a big merger deal," he said. "Historically, deals are struck at times of difficulty ... we don't want to be in trouble." Elkann is the scion of Fiat's founder and top shareholder the Agnelli family. He has said in the past he was prepared to have the Agnelli's stake severely diluted in exchange for a minority holding in a larger auto group. "I believe the priority for FCA is to press ahead with this ambitious (business) plan despite the difficult environment," he said. FCA pledged in January to nearly halve net debt this year, as part of the 2018 plan. Doubts remain about its exposure to a peaking U.S.

Fiat Chrysler CEO Marchionne's health crisis forced succession scramble

Former Fiat Chrysler Chief Executive Sergio Marchionne for more than a year assured investors that he and the automaker's board were working on an orderly succession plan ahead of his expected departure in 2019. But a health crisis that left 66-year-old Marchionne incapacitated in a Swiss hospital set off a transition last week that was sudden and rushed, banking and industry sources said. The company announced on Wednesday that Marchionne had died, succumbing to complications from surgery. It emerged that Marchionne's successor was far from settled. Indeed before last week's crisis, many company executives remained in the dark, four banking sources who spoke to Fiat Chrysler executives told Reuters. The scramble to replace Marchionne led to the resignation of a senior executive who was passed over for the top job, the sources said, and exposed fissures between the Italian and North American sides of the world's seventh-largest automaker. Fiat Chrysler Chairman John Elkann named Michael Manley, head of the company's Jeep and Ram truck divisions, to replace Marchionne at an emergency meeting in Turin, Italy on Saturday. In doing so, Elkann followed Marchionne's wishes to appoint Manley his successor, two sources said. The company has portrayed Manley's appointment as the product of lengthy deliberation. "Sergio and John have always been totally aligned on the choice of Mike Manley," Fiat Chrysler's main spokesman Mike Keegan said on Tuesday, when asked whether there were differences over the succession. Elkann's office declined to comment. Manley could not immediately be reached for comment. This description diverges from what Marchionne himself told investors on June 1 during a day-long strategy presentation in Balocco, Italy. Marchionne said that he and Elkann "from time to time have these chats" about succession, but the issue would not be decided until next year. "It's a 2019 issue," Marchionne said. "So it's not going to happen until we close '18. It just won't happen." He went on to say that the company's board would not engage in a "rubber stamp process." Some analysts have also expressed skepticism that a final decision had been made. "My view is Marchionne and Elkann were still arguing about succession and had different views on the right candidate," Sanford Bernstein analyst Max Warburton said in a note on Monday, referring to the June 1 presentation.

FCA's large, LX-based RWD cars will stick around until 2020

Fiat Chrysler Automobiles plans to stick with the Dodge Challenger, Dodge Charger, and Chrysler 300 until at least 2020, reports Automotive News. The information comes from two unnamed sources and was loosely confirmed by details in the automaker's new labor contract with Unifor, Canada's auto union. The plan, according to two anonymous sources, is to lightly refresh the Challenger, Charger, and 300 until the vehicles make the switch to FCA's new Giorgio platform. The refresh, as Automotive News points out, will happen in 2018. The Giorgio platform currently underpins the Alfa Romeo Giulia and is expected to find its way to two of the three large American vehicles for the 2021 model year. At that time, FCA will discontinue either the Charger or the 300, claim AN's unnamed sources. If one of the vehicles were to go, it would most likely be the 300. The 300's LX platform would be approximately 15 years old in 2020 and the vehicle doesn't draw in as many sales as the Challenger or the Charger. The Charger made the switch from the LX platform in 2010 with the current model utilizing the mildly updated LD platform, while the Challenger recently moved from the LC platform to the LA platform last year. All of those rear-wheel-drive platforms are closely related. Automotive News points out that FCA CEO Sergio Marchionne stated that the new platform could be utilized across various applications in a conference call with analysts last month. The plan, according to the report, is to stretch and widen the Giorgio platform for the next-gen Challenger and Charger. The new platform is also rigid enough to allow the automaker to add a convertible to its lineup, which could lend further credence to rumors of an upcoming Barracuda. Hopefully, the move to the new Giorgio platform doesn't delay the all-wheel-drive Challenger GT AWD or the wide-body, Hellcat-powered Challenger ADR. We'll just have to wait and see. Related Video: News Source: Automotive News - sub. req. Chrysler Dodge Coupe Performance Sedan FCA fiat chrysler automobiles