Volkswagen is considering a merger with Fiat Chrysler - Insane Visions

Volkswagen is considering a merger with Fiat Chrysler

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18 months after the infamous emissions scandal, Volkswagen is dealing with serious financial issues, so we weren’t surprised after hearing that the German company is now considering a merge with Fiat Chrysler or another rival manufacturer.

PSA Group is now Volkswagen AG’s biggest competitor, at least in Europe

This announcement also comes as a result of the recent PSA Group acquirement of General Motors’ Opel business, which, according to Fortune, could turn the group into a more powerful competitor for VW in Europe.

As for Fiat Chrysler Automobiles, they are also interested in a possible deal. However, boss Sergio Marchionne declared that they’re trying to persuade Volkswagen to seek a tie-up with the company, an idea which was initially rejected by the Germans. However, in what seemed to be a change of opinion, CEO Matthias Mueller declared this Tuesday that he might be interested in an eventual partnership.

“We are more open on that account than we used to be previously,” he said after presenting VW’s detailed results from 2016, adding this had “nothing to do with FCA specifically.” “It would be very helpful if Mr. Marchionne were to communicate his considerations to me too and not just to you,” Mueller added.

The birth of a new European giant? Could be, but the risks are also huge

Presuming that these two companies come to an agreement, a fusion between VW and FCA would create an automotive giant, with the ability to dominate the European market, as well as the North American one, reaching a share of around 30 percent.

On the other side, this would also imply thousands of job losses, to which politicians in both Italy and Germany would eventually oppose.

Andrei

A finance and tech news journalist with a passion for entrepreneurship and business. Feel free to message me on Twitter and Facebook.