Rumor

Are VW and Fiat-Chrysler Holding Merger Talks?

If so, is it even a good idea?

Last week there was a rumor going around claiming that the Volkswagen Group and Fiat-Chrysler were holding discussions about a possible merger. We really didn’t believe it at the time, but it appears now that the news may not have been total bullshit. According to a report coming from Automotive News, VW approached Fiat about a potential merger, but so far both companies have denied this. However, other sources are claiming that a potential merger agreement could still happen.

Basically, the Agnelli family, which controls Fiat, would focus solely on Fiat’s Ferrari division. As a result, it would withdraw almost completely from the rest of the auto business. Where would Chrysler fit into all of this? VW is interested in it because it would be further utilized to help VW’s struggling US sales. When word of this possible deal leaked out, Fiat shares increased by as much as 5.1 percent. VW shares, on the other hand, fell by as much as 2.4 percent. Again, everything we’ve heard is just speculation at this point, but several industry analysts see a potential merger as something realistic. For now, neither automaker is talking.

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