General Motors is not up for a merger with Fiat Chrysler.
According to the FT’s Andy Sharman, GM CEO Mary Barra said that Fiat Chrysler CEO Sergio Marchionne had proposed the merger in a letter, wishing to create the world’s top automobile company.
Barra was speaking at the annual shareholders’ meeting on Tuesday in Detroit.
In her comments on Tuesday, Barra noted that GM’s margins have improved over the last four years, and is on track to give back its available free cash flow to shareholders, according to the FT.
And so in short, it sounds like Fiat Chrysler it needs GM more than GM needs Fiat Chrysler.
This also is not the first time GM is turning down Marchionne. Last month, the New York Times reported that Marchionne sent an email to Barra proposing that the two companies combine. This was rejected.
And on Monday, the Wall Street Journal reported that Marchionne had asked hedge funds and activist investors to help convince GM to make a deal.
The motivation for a deal was that large car companies need to consolidate to save billions of dollars in costs.