VW and Fiat deny having talks over possible merger

Article by Christian A., on July 21, 2014

Volkswagen AG, Fiat SpA and Fiat's controlling shareholder all dismiss a report by Manager Magazin that the companies have talked about a potential merger. The magazine, citing unnamed sources, reported that Volkswagen has approached Fiat about a possible merger, adding that VW Chairman Ferdinand Piech has held discussions with associates and members of the Agnelli family, which controls Fiat.

A VW spokesman, however, denied that the carmaker currently has takeovers on its agenda since it is focused on improving its efficiency. Fiat spokesman said in a statement that the Italian carmaker had not had any talks with VW.

A spokesman for Exor, the holding company that holds a 30-percent stake in Fiat, told Reuters that the group did not discuss any merger with VW. According to the report, the Agnelli family would concentrate on Fiat's Ferrari sports-car unit while pulling out almost entirely from the auto business.

It added that Chrysler Group would be able to support VW in the US, where the German carmaker is still struggling. Volkswagen is valued at EUR88 billion ($120 billion), while Fiat is valued at EUR9.9 billion.

Gabriele Gambarova, an analyst with Banca Akros in Milan, told Automotive News that they deem the report as realistic. Juergen Pieper, an analyst with Bankhaus Metzler, noted that an acquisition of Fiat would enable Volkswagen to realize its goal of becoming the largest carmaker in the world immediately.

He, however, said that real interest in Fiat as a whole is “unrealistic” and would entail many issues. It should be noted that Fiat is currently on a slump in Europe and may face potential antitrust issues in South America. The magazine added that any merger would face obstacles like finances and divergent strategies pursued by the carmakers. [source: automotive news - sub. required]

Topics: vw, fiat

If you liked the article, share on:

Pin It

Comments

Recommended

The mid-cycle facelift for the Mercedes-Benz's S-Class have been disclosed to the public eye via these leaked shots. The images that recently surfaced and others like it were published online...
by - March 30, 2017
Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries