CEO of Volkswagen Matthias Mueller have stopped the rumors about the merging of his company with Italian rival Fiat Chrysler. The rumors about merging two automotive giants started after FCA CEO Sergio Marchionne said last week that VW could be an attractive prospective partner and may be interested in talks.
“I haven’t seen Marchionne for months. We are not ready for talks about anything. We have other problems” Mueller said on Geneva auto show. Marchionne has talked about more auto industry mergers in the past and he offered cooperation to General Motors. He has been rejected more than once by General Motors which this week agreed to sell its European unit, Opel, to PSA Group.
PSA-GM deal may lay down other producers to follow successful integration
Nevertheless, Marchionne have tried to realize partnership. “I have no doubt that at the relevant time VW may show up and have a chat”, he said in Geneva last week.
What is behind Marchionne’s efforts? He is planning to retire in 2019 ant he wants to live important trail as the legacy, nut on the other hand he openly said that the PSA-Opel combination “threatens VW most, creating a No. 2 on its heels.” He is arguing in case of consolidation, arguing that the industry wastes money by developing multiple versions of the same technology.
After GM refused his idea for a merger two years ago, Marchionne have search for the solution to decrease debt at Fiat in order to make a company more attractive for offers.”The GM door was never open for me. I knocked and no one answered,” said Marchionne. “Would I knock again? Why not, or at any other door.”
Manufacturers are turning to the self-driving electric cars, which can cause more mergers in the future. PSA’s will have higher chances to compete with Volkswagen. Successfully integrating the mass-market rivals could then encourage others to go same steps.
Volkswagen, which is still recovering from its diesel emissions-cheating scandal, still don’t see a threat from the PSA-Opel combination.