Fiat beeps at 'powerless' analysts

In one of the more bizarre earnings calls, Fiat Chrysler Automobiles last week glossed over profits and losses and instead set out its case for car industry M&A.

The two-and-a-half-hour briefing featured quotes from Alice in Wonderland, five minutes of silence (a toilet break, apparently) and a slugfest on the very existence of analysts.

In the red corner: Sergio Marchionne, above, the straight-shooting, chain-smoking, espresso-fuelled CEO of Fiat Chrysler, who has previously derided "spreadsheet capitalism".

In the blue corner: Max Warburton, a respected research analyst with Bernstein, known for weaving the lyrics of "Bohemian Rhapsody" into a client note.

Mr Warburton said it was pointless for Mr Marchionne to tell him carmakers needed to consolidate. The industry's heavy spending is well documented, and to ask analysts to guide capital markets and bring about megamergers was a stretch.

"We have no influence," said Mr Warburton. "Do you think that German companies listen to us? Do you think Japanese companies have an interest in what we write?"

Mr Marchionne, resisting the urge to be "really rude", shot back: capital markets behave in a way that reflects the opinions of analysts. "Don't shy away from your obligation," he said.

"I make cars, you direct the flow of capital. Own the responsibility, Max."

There are few salesmen like Mr Marchionne. No one would bet against him sealing another big deal. And, if nothing else, his presentation has aired the megamerger issue.

But analysts were left feeling like the afternoon was a waste of time for a lot of highly paid people (journalists excluded).

And it is hard not to agree with Mr Warburton that the people Mr Marchionne should be calling are Bill Ford, GM's Tim Solso and Louis Gallois at Peugeot. Maybe he already has.

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