High mortality rate caused by partial if non-existent integration
Cultural divide (corporate and otherwise)
Inequality of integrating parties
Operating models radically different and never merged
Insufficient sensitivity for brand differences
Lack of respect/trust for one another
Complexity proved to be too much of a stretch for leadership teams

BUT

It enables
Fast execution, enabling rapid scale gain
Fostering step-change/best-of-best approach to modularity/ commonality

AND

? The potential savings are too large to ignore

Eoin Treacy's view

Mr. Marchionne’s most relevant comments are to be found about an hour into this lengthy call. Apple holds the intellectual property to its products and excels at marketing but outsources its production. Car companies have so far been unable to outsource production despite the obvious cost advantages this would provide. Mr Marchionne’s belief that this capital intensive mechanism needs to change is worthy of consideration because it would result in value creation if he can achieve it. 

At the present time Volkswagen supplies the same chassis to a number of its models so the difference between a Volkswagen Passat and an Audi A4 is largely in the trim, tuning of the engine, cosmetics and added extras. Toyota follows a similar strategy but neither outsources manufacturing to a third party despite the fact they purchase parts from a range of vendors.  

Toyota continues to consolidate as it reverts towards the mean while Volkswagen found support this week in the region of the 200-day MA. 

Fiat Chrysler Automobiles has replaced Fiat’s Italian listing and has very little back history. It’s US listing however, has picked up Chrysler’s history. The US listing continues to trend higher and found support three weeks ago in the region of the 200-day MA. 

Here are the results of a Performance Filter for the constituents of the Auto section of the Chart Library.