The automotive industry is a capital-intensive industry. Fiat Chrysler CEO Sergio Marchionne knows it and that’s why he is open to work with Google or Apple:
“Google can buy every automaker out of petty cash. And Apple — they made a net profit of $24 billion in one quarter. This is nonsense. What are we defending? What?”
In a not yet released 2-hour interview with Automobile Mag‘s Georg Kache, Marchionne discusses the recent rumors of a FCA partnership with Google for self-driving cars and how the automaker wants to position itself in an industry disrupted by the likes of Apple, Google, Tesla and Uber.
Marchionne’s company is reportedly in the late stages of discussing an “advanced technical partnership” with Google, while on the other hand, Apple is reportedly in talks to build its upcoming ‘Project Titan’ vehicle in partnership with auto parts giant Magna.
As the executive points out, these companies are too big to ignore. So he discusses what he sees as the ideal role an established automaker like Fiat Chrysler would play in an automotive industry where big tech companies like Google and Apple are willing to spend a lot of money to breaking in. Auto Mag released a snippet of the interview:
“My approach is to be completely open to technology. I think the next paradigm of this business is a paradigm that involves the cooperation for technology with the disruptors. Google is one. Apple is another, even Uber. It’s all about access to the complete information on what people do in the car. That’s when the consumer has time on hand and the business case blossoms. The key is to find a way in which we can coexist with the disruptors, and bring our set of skills to the table. Speed is essential here.
We must establish a link ASAP, must talk to the big players, the newcomers, and the underdogs, everybody. The goal is job sharing on a high level. We build the cars; they build the technology that goes into them. Ideally, I can take this technology and use it across my other brands.”
In the interview set to be released on Monday, Marchionne and Kache discuss several possibilities of multi-brand partnerships between FCA’s Jeep, Alfa-Romeo or Dodge, and both Google and Apple simultaneously, as well as the role of ride-sharing firms like Uber.
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Fiat-Crysler is a dumpster fire that Apple needs to stay away from.
Consumer Reports found them to have the worst reliability.
This week Apple has also been connected with VW a company that just destroyed their reputation and lost consumer confidence.
Despite their recent scandal, consumers still generally see VWs as high quality, well engineered cars. I think the damage to their reputation is overstated.
There’s a joke that FIAT means “Fix It Again, Tony” in the UK for a good reason.
Trust me you want VW before FCA…
Technically, no. Google can’t buy every Automaker out of petty cash, they might be able to buy some of the smaller mfg out of petty cash. Google, or Alphabet, has only $16 Billion in cash, the rest of their money is in short term and long term investments, which is technically not called “petty cash”. They have about $75 Bil in combined of cash, short/long term investments (before taxes). Less after taxes.. Mercedes Benz, which isn’t even the most valuable auto mfg has a market capitalization of around $64 Billion. So, NO. Google/Alphabet couldn’t buy all of the auto mfg out of petty cash if you look at the Market Capitalization. Apple couldn’t either. They could buy some of the smaller auto mfg, but not the larger.
Market Cap of the major car mfg.
Mercedes Benz $64 Bil
GM $49 Bil
Ford $54 Bil
Toyota $166 Bil
um… Company value is not the same as stock value.
To teach you some basics, here’s a link: http://www.investopedia.com/ask/answers/122314/what-difference-between-market-capitalization-and-market-value.asp
Also, Alphabet has about $71.3B.
(PS. such a long comment, all for nothing).
I don’t think you can buy a company without buying out all the shareholders, therefore you will pay at least the market cap.
FIAT??! I guess if they build the Apple Car, it will mean trips to Cupertino to say F.I.A.T. Fix It Again Tim…
Only problem is, Chrysler Fiat has little to offer. They don’t have much expertise in EV, Battery etc… and little to no knowledge on autonomous driving.
IF they want any sort of collaboration, they need to get their act together asap.
The don’t even know how to make reliable cars! (fiat)
That was what i thought. Fiat Group is really behind on those things. In Ferrari they have knowledge of hybride systems from F1 and Other sport cars they make.
Also people Bashing Fiat, I also seen many mercedes cars broke down on the highway, or VW’s.
Some of you people need to stop being suckers for rumours. Just sayin’.
FIAT is also the owner of Ferrari among other brands. would you exchange a Ferrari with a Porche ? and for you Brits, you don’t build cars maybe you asseble them
God knows why you mentioned Brits on this article buy hey-ho, if you want to try and make a smart arsed comment without making yourself look like a clown you might want to get up to speed with the latest automobile news because you’ll find that Fiat don’t own Ferrari at all which kinds of makes your sarcastic comment a bit, er, pointless really.
That’s pretty much the worst possible news.
The breakdown here is that FIAT wants user data. Apple will jealously guard user data. At best, they might give away anonymized data, which is significantly less valuable than what Google is probably willing to provide.
Apple needs to find a partner who is willing to let apple dictate the terms. For the original iPhone, this was AT&T. Who will it be for the car?
Maybe I’m being dumb or just ignorant to what user data would be applicable to a car company. I can see location maybe, but for what? If Fiat going to start selling ad space in my cars infotainment system? I read their comment the same way but I don’t see how that would even be helpful to them. Not disagreeing, just genuinely looking for examples of how user data is going to help them.
Apple don’t give away anonymous data at all – they charge for it. They profit from all the juicy information they have on us – just like Google and everyone else does.
But it’s Apple of course, so your head is buried in the sand.
Yet another reason to sell your Apple stock.
This should have been titled “Fiat-Chrysler CEO desperately tries to find angel funding to avoid another bankruptcy”