Marchionne Denies FCA Merger Talks

CEO Sergio Marchionne says Fiat Chrysler Automobiles NV is not in talks about a merger with PSA Peugeot Citroen or any other carmaker.

Analysts began speculating the two companies might merge after Marchionne began openly seeking a partner for FCA last year. He was rebuffed twice last year by his favorite candidate, General Motors Co.

Speculation began to center on a union with PSA two weeks ago. That’s when CEO Carlos Tavares declared PSA’s financial turnaround complete and said he was willing to discuss partnerships with other carmakers.

Marchionne contends that vehicle manufacturers must merge to marshal sufficient resources to meet increasingly tougher fuel economy and emission rules. Many carmakers agree in principle. But carmakers and outside analysts also say the huge challenges of merging product cycles, manufacturing methods and operating systems make most such deals unappealing.