Toyota: No Thanks to FCA Merger

Toyota Motor Corp. hasn't been asked yet, but it says it sees "no advantage" in merging with Fiat Chrysler Automobiles NV.

"We would not be interested," North American CEO Jim Lentz tells reporters, in part because a merger would only complicate Toyota's product lineup.

Lentz points out that Ford Motor Co. another uninterested FCA merger candidate was able to avoid bankruptcy and boost earnings by simplifying its portfolio by selling off such brands as Aston Martin, Jaguar and Volvo.

Lentz opines that the world's other major carmakers probably feel the same way about the distraction of merging with another company.

FCA has been conducting a highly public search for a full partner because CEO Sergio Marchionne believes industry consolidation is essential for the long-term financial viability of its members.

Observers don't necessarily disagree. But they say collaborating on projects such as powertrains and vehicle platforms may be more fruitful than full mergers.