On Tuesday, Volkswagen Group said that they will not rule out talks with Fiat Chrysler Automobiles N.V (NYSE: FCAU), about a possible merger.
“I am not ruling out a conversation,” said Matthias Mueller, the Volkswagen global CEO. “It would be very helpful if Mr. Marchionne were to communicate his considerations to me too and not just to you.” He said that he had not spoken with Sergio Marchionne, the CEO of Fiat Chrysler, about the topic yet. The spokesperson of Fiat Chrysler declined to comment on this matter, and the spokesperson for Volkswagen was not available to comment immediately.
If both companies start the talks on the merger, the potential intricate matter is the rivalry between Fiat Chrysler and Volkswagen. At Paris auto show, Mr. Marchionne once challenged Volkswagen’s leaders to a shutdown. However, Marchionne said last week, “I have no doubt that at the relevant time VW may show up and have a chat for a merger”.
Last week, denied to talk with Fiat Chrysler about the possible merger at Geneva auto show, saying that Volkswagen is struggling to deal with its emission scandal and push a wide range business transformation. “We are not ready for talks about anything,” Mueller said last week. “I haven't seen Marchionne for months.”
Fiat Chrysler’s Jeep and Ram brands is popular and profitable in the U.S., however, it struggled with the car-heavy brands such as Dodge, Chrysler and Fiat. If the merger of the two company is achieved, there will be a shakeup in the global automotive industry.