The boss of Fiat Chrysler Sergio Marchionne said in Toronto Friday that possible merger partners other than rival General Motors Co. exist as a way for the auto maker to lower costs by boosting production. But that’s about all he said. Fiat Chrysler has approached GM twice since 2012 about a partnership. GM has rebuffed each overture. Mr. Marchionne believes the auto sector needs to consolidate to absorb rising costs the industry faces from increased fuel-economy regulations, stringent automobile safety mandates and the prospect of new competition from the self-driving cars being developed by Apple Inc. and Google Inc. But GM has argued it already has sufficient scale to absorb these costs and aims to achieve returns on invested capital of more than 20%. Cynics will also wonder if Mr. Marchionne’s preferred solution is just a way to stay in business.
