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If GM and FCA Joined, What Would Stay?

by David Zatz on

Sergio Marchionne has publicly ruled out a GM-FCA merger, but the Fiat founding family still seems to want one. If it happens, it will happen with their investment company, Exor, and allied banks taking over an effective majority of General Motors. This would not have to be a complete majority, just enough to get the votes they need.

FCA+GMGM would not be on top, so we may look at US sales to see what would stay. Buick, GMC, and Cadillac carry higher margins, so even with lower sales, they will (probably) remain. Jeep is also unique and would almost certainly stay.  Dodge is FCA’s Pontiac, and would likely stay now that GM is no longer downsizing.

Now, let’s let the numbers talk for themselves…

gm-vs-fca

There are few places where FCA has a clear advantage, as one would actually expect. Dart seems to be the most endangered species in any merger; most of the others can hold their own, especially when considered as part of an ecosystem (e.g. 300, Charger, and Challenger, which all share a core setup.)

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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