FCA's outspoken chief executive admits consolidation may be an "unrealistic dream."

Fiat Chrysler Automobiles CEO Sergio Marchionne has finally signalled a shift away from his persistent attempts to find a merger partner.

Speaking to investors gathered in Amsterdam for the company's annual shareholder meeting, the outspoken executive admitted "we are not at a point of time to discuss any alliance," according to quotes published by Bloomberg.

"We need to be very careful that we don't start unrealistic dreams about consolidation as we are on our way to achieve historically important results and a debt-free position," he added.

FCA had publicly focused on General Motors as its preferred merger partner, but the feeling was not mutual. More recently, Marchionne turned his sights to Volkswagen in a series of seemingly contradictory comments regarding Opel's sale to PSA Group.

Despite seemingly backing down from merger talks in the near term, Marchionne still argues that the industry is overdue for further consolidation.