Marchionne Widens List of Merger Partners

Fiat Chrysler Automobiles CEO Sergio Marchionne is looking at several other would-be merger partners after General Motors Co. snubbed his overture, sources tell Bloomberg News.

Marchionne contends the entire global auto industry must consolidate to afford the cost of developing new products and technologies. He points out that carmakers are currently spending roughly $2 billion per week on such projects, most of them in pursuit of virtually identical goals.

Industry analysts agree with Marchionne's assessment of the industry. But they say FCA's relatively weak financial position makes the company an unattractive partner. So far, GM and other potential candidates have said a merger would only distract them from their own efforts to improve efficiency.

Marchionne hasn't given up on GM, which remains his favorite candidate, according to Bloomberg's sources. But they say he has broadened his list of possible partners to include Honda, Hyundai, Mazda, PSA Peugeot Citroen and Suzuki.