Fiat Chrysler Automobiles chairman John Elkann, like the company’s sweatered Chief executive officer, is making come-hither eye in the hopes of luring a suitor.
FCA needs a partner to turn its?high debt pile in to capital, so Elkann desires other automakers to know just how thrilled he’deb be if they helped FCA save $10 billion a year, he told shareholders of the investment organization controlling FCA (via Bloomberg).
The problem, he lamented, is the fact that other automakers are wrapped up in trying to create autonomous technology, often with outsider help. Like a wallflower with a heart associated with gold, FCA feels overlooked despite having a lot to provide.
“You need two in order to tango, and most in our competitors are busy using the great opportunities which technological disruption provides,” Elkann wrote to the Exor S.p.A. investors.
What’s an Italian-American automaker to do?
Autonomous vehicles are sexy and alluring, but they’re not will make up more than a niche market for years to come, Elkann insisted. Human-driven cars are where the money is today, so why not hop on board and bend some revenue-generating muscle (while eliminating a Five billion euro financial debt in the process)?
“Boring aged carmakers need to figure out how to get this to profitable and safeguard against falling into the 1990 trap associated with ignoring that company while chasing profits in other parts from the value chain,” Elkann said.
Last year, CEO Sergio Marchionne flung a variety of woo at General Motors in a bid to be taken over by a bigger partner, but all his advances had been rebuffed. GM CEO Mary Barra told Marchionne that her company wanted its space and wasn’t interested in playing the area.
It’s unlikely that browbeating your competitors will compel them to merge with you, but Elkann, with Marchionne as his wingman, are going to maintain trying until the company finally sees action.