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Ford, FCA Discussed Possible Merger

Ford, FCA Discussed Possible Merger

Fiat Chrysler Automobiles proposed and bailed on a potential merger with French automaker Renault within the last week, but apparently Renault wasn’t the first prospective partner the automaker entertained.

In a new interview with Automotive News Ford Motor Company Executive Chairman Bill Ford confirmed he and the late FCA CEO Sergio Marchionne had several discussions regarding a perspective merger between the two automakers. The heir recalled the discussions by saying, “[they] had a number of dinners together talking about … whether Ford and FCA would be a good fit.”

Ultimately Ford decided against pursuing a merger with FCA. Ford cited the company’s own challenges and issues at the time as reason enough to avoid the tie-up. He added that a merger with FCA could have potentially “slowed them down” in terms of progress of their own turnaround efforts.

While Ford turned down a prospective merger with FCA, the company is clearly shopping around for alliances and partnerships. Just this year the company has entered into a formal partnership with Volkswagen to co-develop commercial vehicles. Ford has also entered into an agreement with Mahindra and purchased an equity stake in electric vehicle start-up Rivian.

Ford says many of the new technologies automakers are developing will require scale to be economically viable. For this reason, he expects the trend of consolidation to continue; a sentiment routinely expressed by FCA’s former CEO Marchionne.

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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  1. Andrew_L
    I dont see how this tie up would be beneficial for either company.
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