Volkswagen and Fiat deny report of possible merger

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A German magazine has reported that Volkswagen and Fiat Chrysler are in discussions with regards to a possible merger, but the automakers have denied that such talks are taking place.

The publication, Manager Magazin, said that VW chairman Ferdinand Piech has held talks with members and associates of the Agnelli company, which through its holding firm Exor controls a 30% stake in the Fiat Chrysler alliance.

Aside from the Fiat brand, the publication said that VW would be looking to use Chrysler’s North American distribution network to ramp up its slowing sales in the US. The report adds that with sales flagging in Europe, Fiat’s management is looking to have the company quit the volume automotive business and shift its focus on Ferrari.

Both Exor and Fiat, meanwhile, stated that no discussions had taken place, and sources from VW have also said that there had been no talks about a merger.

Other reports, however, intimate that if there were a likelihood of a bid, VW would more likely be looking at Fiat’s Alfa Romeo brand – which it has repeatedly expressed interest for in the past – rather than the entire organisation. Fiat’s CEO Sergio Marchionne has previously stated that Alfa Romeo would be kept under the alliance’s umbrella.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • blackbox on Jul 18, 2014 at 1:51 pm

    Stay away from Alfa, sort out your gearbox problems first.

    Like or Dislike: Thumb up 1 Thumb down 0
    • Heng Lee on Jul 18, 2014 at 11:04 pm

      The problem with gearboxes seems to be solved?

      ‘Volkswagen said the number of vehicles it delivered rose 9.1% to 5.2 million in the first seven months of the year. Deliveries climbed 10% to 735,600 units in July.’

      http://online.wsj.com/news/articles/SB10000872396390444812704577609121281323292

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  • ..oh dear..worse nightmare, the evil empire (VAG) gonna take over FIAT group!..the day that an Alfa is actually a disguised golf and a Ferrari is actually an R8 wt a prancing horse stuck on the bonnet will be the day that all is over for true soulful performance autos….the have taken over ducati…now alfa/ferrari!..i’m going to cry..NOOOOOOOO!!!!!!

    Like or Dislike: Thumb up 0 Thumb down 0
 

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