Opel’s Chief: Marchionne “Right” About Auto Industry Consolidation

Opel CEO Karl-Thomas Neumann says Fiat Chrysler Automobiles CEO Sergio Marchionne is correct about the need for the auto industry to consolidate.

"In principle he's right," Neumann tells reporters in Russelsheim, Germany. "The industry needs to improve volumes, scale and utilization."

But Neumann, like his boss General Motors Co. CEO Mary Barra, rejects the idea of FCA merging with GM. He describes GM's attempt to closely partner with PSA Peugeot Citroen on product development a "big mistake," even though he agrees with Marchionne on the folly of carmakers continuing to separately develop the same technologies.

Marchionne has been repeatedly rebuffed in his attempt to find a carmaking partner for FCA to share such costs. Analysts agree he raises a legitimate concern. But they say finding carmakers with compatible cultures and product platform schedules is extremely difficult.