“We have studied that issue in great detail, both with internal resources and external experts, and it's not in the best interest of General Motors' shareholders” to merge with Fiat Chrysler, GM chief executive Mary Barra told reporters at the IAA motor show in Frankfurt.
GM had the scale needed to achieve the “best return possible to our shareholders,” she was quoted by Bloomberg as saying, adding that she had never met Fiat Chrysler chief Sergio Marchionne to discuss a possible tie-up.
Barra had already rejected Marchionne's proposals in June to look into a possible merger, but Fiat Chrysler's outspoken chief does not seem willing to take no for an answer.
In an interview with the specialist Automotive News, Marchionne was asked whether Fiat Chrysler was considering a hostile takeover.
Marchionne replied: “Not hostile. … There are varying degrees of hugs. I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you. Everything starts with physical contact. Then it can degrade, but it starts with physical contact.”
Marchionne believes the logic of a tie-up between the two was irrefutable and complained that GM had not yet deigned to respond to his approaches.
Italy's Fiat took control of US group Chrysler in October 2014 to create the world's seventh largest carmaker.
GM, for its part, is currently the third-biggest behind Volkswagen and Toyota and owns the Opel and Vauxhall brands in Europe.
Marchionne cancelled his attendance at the IAA in Frankfurt on Monday because of difficult wage talks with US auto unions.