Sergio Marchionne has
burnt bridges with Europe’s biggest carmaker, the
Volkswagen Group, who this week called on him to resign
the Presidency of ACEA, the European automotive industry
body. The call follows the Fiat and Chrysler CEO’s
latest comments on Thursday, criticising VW’s European
pricing strategy.
Marchionne currently
holds the rotating presidency of ACEA, the body that
represents European carmarkers, his second stint in this
position. Although ACEA is supposed to represent all its
members, Marchionne has on numerous occasions
antagonised the German manufacturers with his views
about dealing with overcapacity in Europe. The issue is
something that affects Fiat much more acutely that VW,
BMW or Daimler, and his pleas for EU assistance to
tackle the problem have been mostly ignored.
On Thursday, the
International Herald Tribune reported Marchionne as
saying on the subject of the European new car market:
“It’s a bloodbath of pricing and it’s a bloodbath on
margins.” Marchionne is understood to be unpopular with
a number of his contemporaries on the European
automotive scene, driven in part by his stream of public
comments which tend to disperse blame for Fiat’s current
difficulties everywhere aside from his own door.
However, the latest
sniping seems to have finally drained the patience of VW
Group, with Reuters quoting the German carmaker’s
communications boss as saying, “Marchionne is unbearable
as president of ACEA. In our view, his comments are
unqualified yet again. We’re therefore calling on him to
step down.” According to the Reuters report, VW
may also consider leaving ACEA if Marchionne declines to
resign.