Marchionne Aims for FCA Merger by 2019

Fiat Chrysler Automobiles NV CEO Sergio Marchionne aims to find the company an automotive partner before he retires in early 2019, sources tell Reuters.

Marchionne has repeatedly said the only carmakers capable of surviving long term will be those with a strong global presence and high sales volumes everywhere. He has been making increasingly blunt overtures for a merger partner in recent months.

Reuters sources say Marchionne and the Agnelli family that founded Fiat are especially interested in General Motors Co. Another says FCA has been testing interest "everywhere" but so far has found little interest.

Bankers tell Reuters the market's cautious reception is probably because FCA is a "fragile" company with weak performance in Europe, little presence in China, industry-trailing capabilities in vehicle connectivity and an expensive program to revive its Alfa Romeo brand. The company's operating margin is only 3.4% compared with 5.4% for peer carmakers, according to Thomson Reuters data.