Sunday, 18 November, 2018

So ... VW might consider a Fiat Chrysler tie-up after all

Could Falling Jeep Sales Hurt Fiat Chrysler Stock So ... VW might consider a Fiat Chrysler tie-up after all
Sherri Watson | 27 March, 2017, 08:27

Fiat Chrysler Automobiles chief executive Sergio Marchionne has shot down the idea of a merger with Volkswagen, just days after he raised the idea at the Geneva Motor Show.

Mueller was speaking at VW Group's annual conference on Tuesday when he made the remarks.

Marchionne had said at the Geneva auto show last week that he was expecting Volkswagen to reach out, as more firms are thinking of cost-cutting tie-ups in the vein of France's Peugeot and German carmaker Opel.

Volkswagen left the door open to a potential tie-up with Fiat Chrysler or another rival on Tuesday, as a drop in operating profit at its biggest auto brand showed the challenges it still faces 18 months on from its emissions scandal.

"I am pretty confident about the future of Volkswagen, with or without Marchionne", Mueller said.

"If he wants to come, he knows where I live", he said.

VW's results released at the conference showed that, due to the company's 2015 diesel admissions scandal, underlying operating profits for their primary VW brand fell 10 percent to 1.9 billion euros ($2 billion US), with the profit margin dropping to 1.8 percent from 2 percent in 2015, Reuters reported.

Volkswagen is already the world's largest automaker and a potential alliance with the Italian-American brand would help it dwarf its rivals for size. The FCA boss has been very vocal about Fiat Chrysler's need to combine forces with another major automaker, with Marchionne periodically telling reporters about the benefits of a merger with another major player. While VW has struggled to regain market share in the United States, Fiat Chrysler now owns the profitable Jeep and Ram brands, although its flagship Chrysler, Fiat, and Dodge lines have not been performing as well.