MILAN (Reuters) - The head of Italian holding company Exor (MI:EXOR), which controls carmaker Fiat Chrysler Automobiles (N:FCAU), said on Monday he expected to see more consolidation in the auto sector.
"I'm convinced that the industry needs and will see more consolidation in the future," John Elkann said in a letter to Exor shareholders.
Elkann, a scion of the Agnelli family, which founded Fiat, said he hoped tie-ups in the sector would be driven by reason and common sense rather than by crisis and would take into account the importance of identity and culture.
Fiat, under CEO Sergio Marchionne, took management control of Chrysler in 2009 after the American company emerged from government-backed bankruptcy.
Sources have told Reuters that Marchionne is hoping for a big deal, possibly in the United States, to plug the carmaker's weaknesses and cement his legacy before stepping down in early 2019.
Besides Fiat, Exor also has stakes in tractor and truck maker CNH Industrial (MI:CNHI) and real estate group Cushman & Wakefield, among others.
Exor's net asset value rose 14.8 percent in 2014 to 10.164 billion euros (7 billion pounds).
Elkann said Exor continued to explore new growth opportunities with a focus on the service sector, "especially financial services".
He said the service industry offered a good fit with the rest of the group's investments.
Last year, media reports suggested that Exor was in talks to buy a stake in reinsurer Swiss Re, but both firms denied it.