Fiat needs a partner to survive, according to the chief executive.
Sergio Marchionne said he expected the industry to consolidate in the next two years, leaving six players on the World stage, with the carmaker hooking up with one of them, reports The Times.
He said the business was too small to survive as an independent company.
Speaking to Automotive News Marchionne added: "You need at least 5.5million cars a year to have a chance of making money. "Fiat is not even halfway there. We are not alone in this, so we need to aggregate."
He did not name possible partners.