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Marchionne ready to get tough with GM over merger

FCA CEO Sergio Marchionne absolutely refuses to let go of his dream of a merger with General Motors. With official discussions not happening, Marchionne now hints that a hostile takeover attempt of The General could be under consideration as a future strategy. In a massive interview with Automotive News, the boss explains why a tie-up with GM might be such a windfall for both automakers. By Marchionne's numbers, a merged GM-FCA would produce $30 billion a year in global earnings and 17 million vehicles annually. He claims these huge figures are based on analyzing plants around the world to find growth opportunities. So far, GM is refusing to sit down and look at the numbers, let alone even begin to negotiate. For now, Marchionne just wants to talk, but he's not against aggressive action, if necessary. He uses a bizarre metaphor in the interview to explain his feelings. "There are varying degrees of hugs. I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you. Everything starts with physical contact," he said to Automotive News. "An attack on GM, properly structured, properly financed, it cannot be refused," he said in the interview. Marchionne is looking for partners, too. The UAW's significant stake in GM could be a strong ally, and he's reportedly recruiting activist investors for more help. Selling Magneti Marelli and spinning off Ferrari would put even more cash in the war chest. Both sides also have banks at their aid. While Marchionne received positive replies from some of his "Plan B" partners, he apparently lost interest in working with them. "Are they the people I wanted to get the response from? The answer is probably not. There are people who are interested in doing deals," he said in the interview. News Source: Automotive News - sub. req.Image Credit: Paul Sancya / AP Photo Earnings/Financials Chrysler Fiat GM Sergio Marchionne FCA merger

Bosch fined $57.8 million by DOJ for price fixing and bid rigging

The US Department of Justice has been investigating bid rigging and price fixing among automotive parts suppliers for years, and so far the agency has leveled nearly $2.5 billion in fines against 34 companies. The latest business to be caught in this ongoing crackdown is Germany's Robert Bosch GmbH (Bosch), the world's largest independent auto component maker, and it agrees to pay a $57.8 million criminal fine to the Feds. According to the DOJ, Bosch has agreed to plead guilty to pricing fixing and bid rigging for spark plugs and oxygen sensors supplied to the former DaimlerChrysler, Ford and General Motors. The rigging is said to have occurred between January 2000 and July 2011. Bosch also allegedly played foul with starter motors sold to Volkswagen from January 2009 until at least June 2010. Bosch and other companies allegedly conspired on the pricing for bids to submit to automakers, and sold the parts at noncompetitive prices. The DOJ filed a one-count felony charge in US District Court for these actions. The company's plea is still subject to court approval, though. Bosch is only the third European company to be charged in this investigation, according to the DOJ. So far, many of the fined businesses have been from Japan, including Takata, NGK and others. Some execs have claimed price-fixing has been the standard operating procedure in the auto parts industry for a long time. Robert Bosch GmbH Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. Cars Robert Bosch GmbH, the world's largest independent parts supplier to the automotive industry, based in Gerlingen, Germany, has agreed to plead guilty and to pay a $57.8 million criminal fine for its role in a conspiracy to fix prices and rig bids for spark plugs, oxygen sensors and starter motors sold to automobile and internal combustion engine manufacturers in the United States and elsewhere, the Department of Justice announced today. According to the one-count felony charge filed today in the U.S. District Court of the Eastern District of Michigan, Bosch conspired to allocate the supply of, rig bids for, and to fix, stabilize and maintain the prices of, spark plugs and oxygen sensors sold to automobile and internal combustion engine manufacturers such as DaimlerChrysler AG, Ford Motor Company, General Motors Company and Andreas Stihl AG & Co., among others, in the United States and elsewhere.

Chrysler and Fiat are not going away, though the strategy is shifting

BALOCCO, Italy — At FCA's five-year plan extravaganza last week, most of the news was focused on just four brands — Jeep, Ram, Maserati and Alfa Romeo. In fact, Chrysler, Fiat and Dodge weren't even on the day's agenda. That led to some speculation that Chrysler might finally get the axe. Well, rumors of the brand's demise have been greatly exaggerated. In addition to an updated deal with Waymo, FCA CEO Sergio Marchionne expanded on future plans for Chrysler and Fiat during a Q&A session with investors and journalists. Marchionne said that Chrysler, Dodge and Fiat make up only 20 percent of global sales. While that means Jeep, Ram, Maserati and Alfa Romeo make up the bulk of FCA's profits (and most of that comes from Jeep and Ram). Currently, the Chrysler and Fiat brands just aren't important or valuable enough to warrant their own press conferences, but that doesn't mean things are doom and gloom. Marchionne said that both brands still have a future in FCA's portfolio. For Chrysler, that means more vans and possibly crossovers, and only in the North American market. The Pacifica and Pacifica Hybrid are doing well enough, so those will continue. Look for a crossover or two to come sometime down the line. Every Chrysler going forward will focus on utility and that's bad news for 300 enthusiasts: Marchionne said flat out that the Chrysler lineup won't contain any cars. Expect hybrid, plug-in hybrid and battery-electric versions of each new model. FCA plans to have an electrified version of every global model by 2022. Details were less clear for Fiat's future, though it won't be going away. The only new model that was announced was a new version of the all-electric Fiat 500e, a car Marchionne famously encouraged customers not to buy as the company lost $14,000 on each one sold. For North America, Fiat will focus on "green cars," though what exactly that means is unclear. Expect a refreshed version of the 500X in the next couple of years. Related Video: Image Credit: Reuters Earnings/Financials Green Chrysler Fiat Crossover Minivan/Van chrysler pacifica fiat 500e