FCA Uninterested in Merger with Volkswagen


FCA uninterested in merger with Volkswagen as CEO Sergio Marchionne denied after VW’s Matthias Mueller reportedly signaled his positive concern

While automakers around the world are collaboration with their respective rivals in an attempt to jointly develop products and platforms to reduce the production cost, FCA Chief Executive Officer Sergio Marchionne has clearly denied any interest in merger with world’s largest automobile group Volkswagen AG. Marchionne’s comment comes right after VW CEO Matthias Mueller signaled his interest in collaboration with FCA or rival like that.

It has been a speculation in the automotive world, that two automotive giants like FCA and Volkswagen AG could collaborate in an attempt to reduce production cost and they could jointly develop products, platforms and automotive technologies as well. When asked about it, VW CEO Matthias Mueller said, he is not ruling out a conversation between two groups. But, Mueller also mentioned that he would like Marchionne to discuss the matter with him directly.

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Also read: Tata Signs Deal with Volkswagen and Skoda; First Joint Products to Launch in 2019

In reply, the top executive of Fiat Chrysler Automobiles, Sergio Marchionne said, he has zero interest in pursuing merger talks with his counterpart at VW. But he also said, Mueller can come and discuss the issue with him. It seems that the two group’s CEOs are now having an ego war between them.

Experts believe, this war of words doesn’t mean that a merger is impossible. But at this point, the collaboration between the two auto giants is certainly not happening. They also say, it could happen in near future, given two brands change their attitude towards each other.

Also read: Mahindra and Ford Mulling Over Global Partnership for Product Development

With Volkswagen being the largest automaker in the world, and FCA being the owner of several major automobile brands like Jeep, Fiat, Chrysler etc, this could be one of the biggest collaboration in the history of automobiles. Also, if it becomes fruitful, the merger could impact the entire automotive world with these two brands grabbing a large chunk of world market.