What a GM-FCA alliance could represent in terms of production?
- Would a GM-FCA alliance (desired by Sergio Marchionne, CEO of the FCA group) be relevant? If the strategy of FCA’s leader is mainly focused on scale economies (on the production and platforms development), it is interesting to see what is the current position of these two groups in the global market.
- In terms of sales volume, GM group has sold 9.92 million vehicles in 2014, placing it in third place worldwide behind Toyota and VW. The FCA group for its part sold 4.75 million vehicles in 2014 (two times less than the GM group), placing it in seventh place behind Ford.
- By adding up the sales of both groups, GM and FCA would hypothetically become the world leader. However competition between the brands of the two groups exist as they are placed on the same market segments, with a significant number of brands to manage. For example, in the US, the Pick-ups Chevrolet Silverado (GM) produced at 625 000 units in 2014, GMC Sierra (GM) produced at 275 000 units in 2014 and Dodge RAM (FCA) produced 565 000 units in 2014 are in strong competition.
- Geographically, the main markets for GM are the USA and China (2.9 million and 3.3 million vehicles in 2014, respectively) representing 62.5% of its sales. FCA's main markets are the USA and Europe (2.1 million and 1.1 million vehicles in 2014, respectively) representing 67.5% of sales. In South America, the two groups are equal. Except for Asia, the areas of influence of the two carmakers are fairly complementary.
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