Exor discusses long-term commitment to Fiat Chrysler

Exor

Exor, the holding company of the Agnelli family, is still committed to Fiat Chrysler Automobiles (FCA), chairman John Elkann stated, in comments that may reduce speculation the Italian automaker could be the target of a takeover.

“Our permanence in the capital of FCA has given its successive leadership teams the latitude to plan for the long term instead of having to react to daily pressures,” John Elkann, who is also Fiat Chrysler chairman, stated in a letter to Exor shareholders released late on Monday.

“This approach and mindset remain as relevant to us now as ever and our commitment to FCA and to participating in its bold and profitable future is also not changed.”

Exor, the automaker’s biggest shareholder with a stake of 29 percent, has been diversifying its asset base in these years after purchasing U.S. reinsurer PartnerRe in 2015.

Media reports last month stated Renault wanted to resume merger talks with Nissan under 12 months, after which it could be eyeing a bid for Fiat.

The president of Peugeot family holding company FFP stated he would like to see a new deal and suggested Fiat Chrysler was one of the options.

Elkann stated the next 20 years in the car industry were set to observe a great level of change and suggested the Agnelli family, the founders of Fiat, would not just stand by.

“We are figured out that we and Fiat Chrysler will play our part actively and ambitiously in this new and exciting era,” he stated in the letter.

Following the death of former CEO Sergio Marchionne in 2018, speculation about the future of Fiat Chrysler has escalated.

Marchionne, who had founded the group by merging a struggling Fiat with Chrysler of the U.S., had supported industry mergers to share the cost of building electric and self-driving cars.

Automakers across the world are looking to tie-ups to deal with rising competition, the increase of electrification and the threat of a trade war between countries such as the United States and China.

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