The FINANCIAL - GM Says It Is Uninterested in a Merger With Fiat Chrysler

GM Says It Is Uninterested in a Merger With Fiat Chrysler

GM Says It Is Uninterested in a Merger With Fiat Chrysler

The FINANCIAL -- General Motors Co. management isn't interested in a merger with Fiat Chrysler Automobiles NV, arguing it would do little to save money through scale and interrupt the company's efforts to improve its own operations, according to Nasdaq.

"We have scale, and we have leveraged the opportunities where we could benefit from partnerships," said Mary Barra, the chief executive officer of GM in question-and-answer session ahead of the company's 2015 shareholder meeting in Detroit.

Ms. Barra acknowledged that GM had been approached by FCA through an email, which "was fully vetted." Sergio Marchionne, the chief executive officer of FCA, made the approach to GM and continues to try to push a tie-up between the car companies, arguing that the industry needs consolidation.

Mr. Marchionne now has approached activist investors in hopes of pushing a tie-up to wring out more value in GM.

GM's share price has barely moved since November 2010 when the company went public following emergence from its publicly backed bankruptcy in 2009.

Separately, GM may be facing wire-fraud charges from U.S. federal authorities for its handling of an ignition- switch flaw, which is tied to more than 100 deaths, according to people familiar with the matter who spoke with The Wall Street Journal.

Ms. Barra declined to address the potential for the criminal charges, saying only that the company had fully cooperated with the authorities. She said she met with Justice Department officials in 2014.

 

Author: Temur Tatishvili