Toyota has not been approached by Fiat Chrysler yet for a merger.
Bloomberg recently reported that the Chief Executive Officer of Toyota Motor Corp.’s North American Unit, Mr. Jim Lentz mentioned to reporters recently that the automotive manufacturer was not ready to associate itself with other automakers and has also not been approached by Fiat Chrysler Automobiles seeking a merger.
The CEO was addressing reporters during a round table conference before the inauguration of their Toyota Technical Center that is situated near Ann Arbor, Michigan. Mr. Lentz mentioned in a statement, “It’s something we would not be interested in At 10 million (vehicles), we have enough scale right now to do what we need to do. There really would be no advantage for us.”
Mr. Lentz mentioned examples like the Ford Motor Company which faced bankruptcy since it started to offload extra brands like Aston Martin, Volvo, jaguar and Land Rover. Thus, they started to retain their focus on a relatively smaller manageable portfolio.
He further added that to him a relatively large Original Equipment Manufacturer (OEM). He now believes that it is relatively difficult for them to take on Chrysler considering that was initially very successful for Ford. He further added, “FCA has a very strong Jeep brand, and especially today with fuel prices, it’s a great brand to have … but it really isn’t a fit for what we need at Toyota.”
Apart from this, Ford has also acknowledged that it now does not wish to pursue any merger. The company mentioned this during an investor event the previous week. Bob Shanks, the chief finance officer has admitted that there is a requirement for automakers to consolidate through technology and supplier alliances through other companies in this business. However, “we’re not a suitor for FCA.”
Mr. Shanks also claimed that when Mr. Marchionne did not really approach Ford directly. However alliances on a small scale with companies like Fiat Chrysler along with another automaker “would make sense.”
According to a senior analyst, at Kelley Blue Book, Mr. Karl Brauer has that opinion that Mr. Marchionne is likely to find a partner sooner or later it will become the industry giant. “Honestly, I think most other large automakers feel they have enough challenges to manage. Poor Sergio, always a bridesmaid, never a bride,” he said.
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