General Motors looks to fight off Fiat merger moves
General Motors (GM) and Fiat Chrysler Automobiles (FCA) have hired investment banks for help to deal with a stand-off as FCA seeks to force a merger with its Detroit-based rival, according to sources familiar with the matter.
GM is being advised by Goldman Sachs, while FCA is working with UBS, sources said. Morgan Stanley is also said to be working with GM. GM's board rebuffed a merger proposal from the Italian-American car-maker earlier this year and chief executive Mary Barra said last week she had no interest in a deal.
But that did not stop Fiat's Sergio Marchionne working on a merger plan, sources said. He is lobbying GM investors in an effort to drag its board to the negotiating table, they said.
Mergers are on the cards as car-makers face mounting costs to engineer vehicles that emit little or no carbon dioxide, and can avoid collisions using complex robotic driving systems.