Following the PSA and Opel deal, Volkswagen CEO Matthias Müller has said that he wouldn't rule out a partnership with Fiat Chrysler Automobiles
Jim Holder
14 March 2017

Volkswagen Group CEO Matthias Muller has refused to rule out forging a partnership with Fiat Chrysler Automobiles (FCA) - but says that no talks have taken place.

At the recent Geneva motor show, (FCA) boss Sergio Marchionne speculated that the Volkswagen Group would be hardest hit by the union of the PSA Group and GM Europe, as they will from Europe’s second largest car maker. He suggested a partnership between FCA and the Volkswagen Group could help the latter maintain its dominant position in the market.

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"You need to achieve scale or we will end up delivering an incredibly poor return and margins on this business. We need to fix this,” said Marchionne, who has long advocated car mergers as a way to share the costs of making more environmentally friendly and technological cars.

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However, Müller responded to Marchionne's comments at the Volkswagen Group’s annual press conference to announce its profits, saying: “There has been no contact at this point between Mr Marchionne and me, but I have never said I would exclude it.

“We haven’t dealt with it. Since I assumed the helm here in 2015 there have been different problems to FCA for me to focus on.

"In my opinion, size does not matter. I have always said volume is not our sole goal. We want to be a successful manufacturer in every way."

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Comments
11

14 March 2017
Taking on FCA would surely be a liability too far, though I guess that it would provide VW with a route to the US market (having failed spectacularly in the past) - and it would be an expensive way of aquiring Alfa Romeo which still has some brand value.

14 March 2017
This would be terrible it's bad enough that Seat and Skoda have last any brand identity, to do the same with Fiat/Alfa etc would be terrible. VAG really are trying to take over everything!

14 March 2017
I thought a VW-JLR partnership might be more feasible, given the MoU signed last week..


14 March 2017
You'd have though that nearly a decade after the Daimler-Chrysler debacle that VAG would have remembered what happened during that ill starred merger. Who was it said that "there's a sucker born every minute" there's still unresolved issues over Dieselgate and the new plant in Tennessee to justify it's existence. So VW would be reminded that when history repeats itself it usually repeats itself as a farce, so if I was on the VW board I'd give any dealings with Fiat Chrysler a very wide berth indeed

14 March 2017
Oh God please no.

14 March 2017
Volkswagen is head over heels in the dirty diesel crisis of their making but Fiat is another car maker that has been accused of dabbling in dodgy diesel practices by none other than the German authorities. Now there is talk about the two groups sharing their exploits. Does Europe have any rules against monopoly and consumer exploitation?

15 March 2017
Perhaps Fiat could help VW improve its reliability.......

15 March 2017
Classic!
poon

wmb

15 March 2017
...the same thing. VW Group's CEO is open to a Partnership, but FCA's wants a Merger! Many partnerships are like what FCA had with Mazda with the MX-5 and the re-imagined 124 Spider, or Ford and GM did on their new 9/10 speed transmission. Unless VW Group's CEO is interested in a partnership like that between Nissan-Renault, FCA's has been pressing for a full on merger! Full on to the extent that one understands that he and Ferrari are not coming with such a Merger. It seems to me that he wants to dump most of FCA off on some other unsuspecting automakers and ride off into the sunset in the Ferrari he just became CEO of.

wmb

15 March 2017
...the same thing. VW Group's CEO is open to a Partnership, but FCA's wants a Merger! Many partnerships are like what FCA had with Mazda with the MX-5 and the re-imagined 124 Spider, or Ford and GM did on their new 9/10 speed transmission. Unless VW Group's CEO is interested in a partnership like that between Nissan-Renault, FCA's has been pressing for a full on merger! Full on to the extent that one understands that he and Ferrari are not coming with such a Merger. It seems to me that he wants to dump most of FCA off on some other unsuspecting automakers and ride off into the sunset in the Ferrari he just became CEO of.

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