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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.

Watch as U.S. auto industry springs back to life after lockdown

WARREN, Michigan — The Detroit Three automakers and their suppliers began restarting assembly lines on Monday after a two-month coronavirus lockdown in a slow revival of a sector that employs nearly 1 million people in the United States. On a chilly and damp Monday morning, hundreds of workers at Fiat Chrysler Automobile's (FCA) truck plant in Warren, Michigan, began lining up before 4 a.m. to start the 5 a.m. shift. Signs overhead read: "Let's restart." "I'm a little nervous," said Larry Smith, 53, of New Baltimore, who works on wheel alignment away from the assembly line. "They made all the precautions (and) they've done everything they can to prepare us ... I'm trusting in God." Detroit automakers on Monday said there were no issues with absenteeism as the plants opened. FCA reopened four U.S. assembly plants on Monday, including Warren Truck, on a single shift, as well as four parts plants. The reopening of car plants will be a closely watched test of whether workers across a range of U.S. industries can return to factories in large numbers without a resurgence of infections. General Motors Co, Ford Motor Co and FCA have all been preparing for weeks to reopen their North American factories in a push to restart work in an industry that accounts for about 6% of U.S. economic activity. Investors welcomed the gradual restart, sending GM's shares up more than 9% on Monday. FCA shares rose 7.3%, while Ford's were up 6.7%. Auto companies have redesigned assembly lines and retrained workers in an effort to avoid coronavirus outbreaks that could derail production again. Workers entering factories on Monday were checked by temperature monitors. Face masks or shields are standard protective equipment. Jobs such as installing seat belts that used to require two or more workers to get close together inside a vehicle have been redesigned to keep people a safe distance apart. Plastic screens have been installed along assembly lines to separate workers leaning in to the engine compartments of vehicles. Break areas have been reconfigured to keep workers six feet apart. The Detroit automakers have collaborated with each other and with the United Auto Workers to develop common coronavirus safety practices. Other automakers in the United States are adopting similar safety measures.

GM, Ford and Fiat Chrysler set target date for restarting production

The parking lot stands empty at Fiat Chrysler's sprawling Belvidere, Ill., assembly plant. / Getty Images   General Motors, Ford and Fiat Chrysler Automobiles are targeting May 18 to resume some production at their U.S. factories after shutting down plants in March due to the coronavirus outbreak, the Wall Street Journal reported. Executives from the companies in recent days tentatively settled on the timeline following talks with United Auto Workers (UAW) leaders and Michigan Gov. Gretchen Whitmer's office, the Journal said on Monday, citing people familiar with the plans. The head of the UAW union last week warned it was "too soon and too risky" to reopen auto plants and Michigan's economy in early May, citing risks to workers. The companies are working with the union on drawing up safety protocols for reducing exposure risk for workers, but haven't finalized those terms yet, according to the WSJ report. GM, Ford, Fiat Chrysler and UAW did not immediately respond to Reuters requests for comment.   Plants/Manufacturing Chrysler Fiat Ford GM coronavirus