A new development may overshadow the annual GM shareholders meeting. Could there be a big merger? Fiat Chrysler CEO Sergio Marchionne is reportedly reaching out to hedge funds and activist investors to help persuade General Motors to agree to a merger. Marchionne sees them as a means to consolidate the auto industry. He has been looking for a deep-pocket partner to help pay the heavy investments needed to meet demands for future technology. Marchionne sent an email to GM CEO Mary Barra about a possible merger, but it was not the only such conversation Fiat Chrysler has had with other carmakers, confirmed by the company’s chairman in Italy.
Reports have persisted that Marchionne was hoping for a big deal, possibly in the United States, to plug the carmaker’s weaknesses. GM will hold its stockholders meeting Tuesday in Detroit.