No offer for Fiat Chrysler on the table, CEO says

Fiat Chrysler (FCA) hasn’t received any offer for the firm nor is the world’s seventh-largest carmaker working on any “big deal”, Chief Executive Sergio Marchionne said on Saturday.

Speaking on the sidelines of the Italian Formula One Grand Prix, Marchionne said the focus stayed on executing the provider’s business plan to 2018.

Asked whether FCA was approached by someone or if there was an offer on the table, he said: “No.”

The organization’s share price jumped to record highs last month following reports of interest to the group or a number of its titles from China.

China’s Great Wall Motor Co Ltd publicly said that it was interested in FCA, but had not held discussions or signed a deal with executives in the Italian-American automaker.

The inventory transfer was also helped by expectations that the business might separate from a number of its components.

Marchionne reiterated on Saturday that FCA was working on a plan to “purify” its portfolio and that components, like the components companies, would be separated from the group. He expects to complete that process by the end of 2018.

“There are actions within the group which don’t belong to an automobile manufacturer, for instance the components businesses. The group has to be rid of these things,” he told journalists.

Asked whether an announcement could come this season, Marchionne said it was up to the board to decide and that it would meet at the end of September.

He said the time wasn’t appropriate for a spin-off of luxury brand Maserati and superior Alfa Romeo and the 2 brands required to become self-sustainable entities and “have the muscle to stand on their toes, make sufficient money”.

“The way we see it today, it is nearly impossible, if not impossible, to observe that a spin-off of Alfa Romeo/Maserati, these are two things which are immature and in a growth stage,” he said.

“It is the wrong moment, we’re not able to do it.”

He said the notion of separating the two brands from FCA’s mass market business made sense and didn’t rule out this happening in future, but not beneath his tenure, which continues until April 2019.

“If there’s a chance in future, it would surely happen after I am gone. It won’t occur while Marchionne is about,” he said.

Courtesy: The Globe And Mail

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