Sergio Marchionne, the all seeing eye of Fiat/Chrysler, has intimated a co-operation with either GM or Ford is technically feasible.
Development costs are rising within the auto industry and consolidation is seen as a prudent way of spreading costs particularly if you are Fiat where sales are not rising as fast as anticipated and profit margins are slim.
New technologies such as self driving cars, hybrid powerplants and developing clear emitting vehicles combines to push up the cost of making cars.
Marchionne’s preferred consolidation strategy is not so favorable when it comes to European brands.
The Fiat CEO would not consider a joint venture with Peugeot / Citroen because it would not solve Fiat’s problems.
Marchionne has never held any talks with VW executives but is hinting at a partnership or potential merger outside of Europe.
Fiat has many issues to resolve but the real question is would a potential partner view Fiat as being viable, that is a question Marchionne must be asking himself behind closed doors.
What is feasible is the size of Marchionne’s salary, last year the CEO’s earned a staggering 31 million euros. When he eventually retires he will also be awarded an additional bonus of around 10 million euros.