moparnut
Administrator
Analysis: Even while he was in New York celebrating Ferrari’s very successful initial public offering, Fiat Chrysler CEO Sergio Marchionne was back on his soapbox, pushing for consolidation.
It may be that Marchionne’s self-professed capital addiction is producing some cognitive difficulties. Bloomberg Newsreported thatMarchionne claimed that the Volkswagen diesel scandal is proof of the need for mergers to conserve capital while complying with ever-more-stringent government relations.
Bloomberg quoted Marchionne when he said the industry would “pay the price” as the cost of compliance rises “exponentially.”
While there is no doubt compliance is expensive, Marchionne’s remarks are a bit off base. Volkswagen’s current woes aren’t due to failing to comply; the company spent years deliberately flouting regulations with rigged software. (...) →
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It may be that Marchionne’s self-professed capital addiction is producing some cognitive difficulties. Bloomberg Newsreported thatMarchionne claimed that the Volkswagen diesel scandal is proof of the need for mergers to conserve capital while complying with ever-more-stringent government relations.
Bloomberg quoted Marchionne when he said the industry would “pay the price” as the cost of compliance rises “exponentially.”
While there is no doubt compliance is expensive, Marchionne’s remarks are a bit off base. Volkswagen’s current woes aren’t due to failing to comply; the company spent years deliberately flouting regulations with rigged software. (...) →
More...