THERE’S nothing like being exposed in the market place: no doubt that’s a strong driver behind Volkswagen and FCA (Fiat Chrysler Automobile) to be discussing the potential idea of a merger following the PSA-Opel/Vauxhall deal.
According to a report in Reuters, Volkswagen faced a drop in operating profits 18 months on from the Dieselgate scandal and VW CEO Matthias Mueller said he was minded to consider a tie-up, signalling a change of tone from Mueller.
According to Reuters, Mueller said: “We are more open on that account than we used to be previously,” adding this had “nothing to do with FCA specifically.”
With the PSA-Opel/Vauxhall deal giving that group a potential 17% market share in Europe – second behind Volkswagen with around 25% of the European market – it leaves FCA exposed on just 7%.
Such a partnership would not all be one way, though – any potential tie up with FCA would also give Volkswagen valuable access to the US market: FCA holds 12.8% market share (number four in the market) compared to Volkswagen’s 3.4%.
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