UPDATE 1-Fiat Chrysler CEO says pursuing merger with GM a "high priority"

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MONZA, Italy, Sept 6 (Reuters) - Fiat Chrysler Automobiles (NYSE:FCAU)
(FCA) FCHA.MI boss Sergio Marchionne said on Sunday that
seeking a tie-up with General Motors (NYSE:GM) GM.N was a "high
priority" and such a deal would also be the best strategic
option for its U.S. rival.
GM's board rebuffed a merger proposal from the
Italian-American carmaker earlier this year. That has not
stopped Marchionne from wooing his bigger competitor as he seeks
to reduce the number of players in the industry and share the
prohibitive costs of building greener and more intelligent cars.
"That discussion remains a high priority for FCA," he told
journalists on the sidelines of the Formula One Italian Grand
Prix in Monza, northern Italy.
He did not want to discuss the next steps FCA might take or
their timing, but said a merger with GM would "be the best
possible strategic alternative for us and for them. General
Motors does remain the ideal partner for us and we represent a
not easily replaceable alternative for them."
Marchionne declined to comment on whether FCA would pursue a
hostile bid for GM.
"I have zero comment on that issue. I'm not a good
forecaster of the future when it comes to that," he said.
He added he had not gone out to speak to any GM shareholders
about the issue, but may have spoken to some of them by accident
because of the companies' overlapping investor base.
Marchionne said he had had a brief chat about his GM
ambitions with Italian Prime Minister Matteo Renzi, but added
that while Renzi "may have his personal preferences, he's never
expressed it".
Addressing concerns that such a merger could mean job cuts,
he said: "The implication of any tie up of that calibre would be
absolutely zero on the manufacturing infrastructure of the two
companies."
GM has repeatedly said it prefers to go it alone. The U.S.
automaker said last week that remained the best strategy to
create value for its shareholders, even after an in-depth review
of a possible merger with FCA.