Report: GM Activists Don’t Favor Merger with FCA

Activist hedge funds are signaling no interest in pushing for a possible merger between General Motors Co. and Fiat Chrysler Automobiles NV, the Financial Times reports.

FCA CEO Sergio Marchionne has approached GM about such a deal. Previous reports say he had encouraged activist shareholders to pressure the compqny into launching formal talks about the proposal. But sources tell the FT investors appear more interested in corporate cost-cutting at GM than the rigors of a complex merger.

Multiple FT sources agree with Marchionne's observation that the auto industry should consolidate to reduce product and technology development costs. But the sources opine that a specific merger between GM and FCA doesn't make strategic sense.