Is Marchionne seeking sale of Fiat Chrysler?

Fiat Chrysler Automobiles CEO Sergio Marchionne may have signaled a desire to sell the car company or merge with a partner, even one like cash-rich Apple or Google, as he criticized the industry for spending too much on product development, expenses that sap value for customers and shareholders.

"I've always been intrigued by the notion of having technology disrupters show up in the marketplace and change the paradigm," Marchionne said. "If they show up and they are truly successful, with their cash piles and know-how, they could fundamentally hurt this industry."

Marchionne delivered his treatise during the company's earnings conference call with Wall Street analysts on Wednesday. His main thrust was that the auto industry needs consolidation, generally code for merger, to become more nimble and profitable.

"We have failed, I think, collectively as an industry to deliver value," Marchionne said.

Over the past 10 years, automakers have invested heavily in restructuring how they develop and produce cars, Marchionne said. And some companies -- including Chrysler and General Motors -- have had to borrow money from governments to survive.

After all of that, the industry's return on the money it has invested lags behind almost all other industries, he said.

For about 30 minutes, Marchionne took analysts through "Confessions of a capital junkie" -- a 25-page PowerPoint presentation available on the company's website -- that lays out the reasons why the automotive industry, as it is structured today, is unsustainable.

Marchionne has delivered a similar analysis in the past. But his method of delivery during an earnings call was unconventional.

Van Conway, president of Conway MacKenzie, a consulting and restructuring firm, said he took the comments to mean that the company is for sale.

"He is an out-of-the-box type of guy … probably nobody other than him would do this," Conway said. "It's very odd."

Marchionne might have scared off investors. FCA's stock fell 77 cents, or 4.7% per share, to $15.50 by Wednesday afternoon, even though the automaker reported better-than-expected profits for the first quarter.

Marchionne said the automotive industry's failure to perform as well as other industries -- ranging from aerospace and defense to retail -- is reflected in the stock prices of automotive manufacturers, which have historically lagged other industries.

"The overriding theme of this, which is something I have spent most of my professional life worrying about, is trying to effectively guide businesses away from mediocrity," Marchionne said. "This is an industry that has not fared well."

The presentation also outlines the escalating costs all automakers face as they wrestle with stricter emissions regulations, escalating regulatory costs related to recalls and the need to keep pace with rapid technology developments in the area of infotainment and autonomous driving.

In recent months, Marchionne has spoken often about his view that the world's largest automakers face ever-increasing costs that will force automakers to consider partnerships.

Last month, Marchionne said a deal with Ford or GM would be "technically feasible."

John Elkann, chairman of Fiat Chrysler Automobiles, told shareholders earlier this month that said he is convinced that the automotive industry needs to go through additional consolidation because of the rising cost of developing new cars for global markets.

In the past, those comments typically sparked a raft of stories that led to speculation that he and FCA Chairman Elkann are trying to sell FCA. Often, commentators have said Marchionne, who engineered Fiat's acquisition and merger with Chrysler, wants to cap off his career as a consummate dealmaker with one last, final, mega-merger.

"Most of that stuff is absolute hogwash," Marchionne said. "This is a (industry) problem that fundamentally cannot be ignored."

Marchionne also suggested that he is not signaling that FCA is for sale. Nevertheless, he opened the door for unconventional partnerships or mergers across industries with companies such as Apple or Google.

When asked whether he would consider approaching Apple or Google about forming strategic partnerships, Marchionne said, "The answer is that it is possible."

Within the automotive industry, top executives at Ford, GM, Toyota, Renault-Nissan and Peugeot have all said in recent weeks they have no interest in buying FCA or taking part in a merger with the automaker.

"We're already in that top tier. We have a well-articulated plan and we are not going to entertain anything that would distract us from achieving that plan," GM CEO Mary Barra said last week in response to a question about her view on consolidation.

As analysts expressed confusion over which automakers might make a good match for FCA, they also applauded Marchionne's call for consolidation.

Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter @BrentSnavely.