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Rumour: FCA - Volkswagen merger?

Discussion in 'Fiat Global News' started by ramjn, Mar 16, 2017.

  1. ramjn

    ramjn Staff Member Janitor

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    Reports say that Volkswagen is open for the merger talks with FCA. This has come after Marchionne recently specified that it won't surprise him if VW approaches him merger plan.

    Report - "Volkswagen left the door open to a potential tie-up with Fiat Chrysler or another rival on Tuesday, as a drop in operating profit at its biggest car brand showed the challenges it still faces 18 months on from its emissions scandal.

    The German company is likely to see heightened competition in Europe after Peugeot maker PSA Group agreed this month to buy General Motors' Opel business to create a stronger second player in the region behind VW."


    Source - Volkswagen Leaves Door Open to Merger With Fiat Chrysler

    If this materializes, what would this mean for India?
     
    Last edited: Mar 16, 2017
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  2. limraj

    limraj Esperto

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    Will be fun. Tata-Skoda | VW-Fiat.
    Hope horror stories of service of the Europeans will end. Tata will further make products like Tiago, Hexa to Euro standards and will be cheaper.
     
  3. Sumit

    Sumit Superiore

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    IMO Fiat won't benefit much. They will keep selling their engines at the best.
     
  4. asimpleson

    asimpleson Esperto

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    They all realise that quality and performance at times means complexity of parts and design coupled with low service costs and gaining trust to be accepted as a mass market brand. To propogate dominate the top two especially in India. If both sides decide amicably they will win some and so will customers. Don't see why they can't do better.

    @prabhjot
     
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  5. ramjn

    ramjn Staff Member Janitor

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    I doubt it. If merged, VW team may oppose selling engines to Suzuki even if it is going to hurt a part of it in India. They may make sure to block whatever they can to make Suzuki not a recipient of engine anymore.
     
  6. asimpleson

    asimpleson Esperto

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    That's an interesting thought, but given Marchionne's ways, what are the chances of him agreeing to it. Last I read they said they are open to discussion, which is an investor oriented move perhaps for VW? Or there maybe some substantial back channel talks already happening? They've driven the campaign so well against the emissions cheat, the press had a superb time there, and ramifications have shown up on international level perhaps. So it will be interesting to see what type of deal shapes up. VW for Germany, is like Dassault for french and Tata for India.
    Exports accounted for 45% of their sale by the way.
     
    Last edited: Mar 16, 2017
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  7. prabhjot

    prabhjot Esperto

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    Imo marchionne and j elkann/ agnelli are more interested in a deal with gm, since gm has no family-owner/promoter, and moreover would be vulnerable to pressure from the stock market given its stagnant share prices in a booming market, and a looming margins pressure in the vital-for them usa car/sub market. They have both said so explicitly, marchionemarchionne again just recently.

    Vw would have strong financial incentives to not-necessarily merge but invest/etc in fca for the. Sake of the usa market, for jeep, ram, fiat Latham, Alfa and Maserati etc.

    Such deals can be structured and operationalised in a multitude of ways. The term and imagination of 'merger' is therefore misleading without those devilish details.

    IF fca meets its 2018 financial plan targets of no net-debt, 9 billion$ in net annual profits it will really be in a fine position to only do such a deal that boosts the firm financially further (insurance against a euro or American recession) on a long term structural basis and simultaneously leaves fca as a quasi-independent,unmerged firm albeit one that starts large scale joint programs of sharing at a minimum engines, transmissions with one or two other large auto firms. Esp small gasoline, diesels, and (mild)hybrid powertrains.

    @asimpleson
     
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  8. carl_jhonson

    carl_jhonson Amatore

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    “I only said that if you were the No. 1 automaker in Europe and somebody combines with another automaker to become the second and gets very close to your position, your very first reaction is to distance the second again,” Marchionne told reporters Wednesday following remarks by President Donald Trump. “We are the only natural combination partner for somebody who wants to do that. If you were playing a chess board game, that’s what you would do."

    http://www.autonews.com/article/201...ionne-has-zero-interest-in-pursuing-vw-merger
     
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  9. prabhjot

    prabhjot Esperto

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    Marchionne is 'waiting with anticipation' to meet VW chief

    March 21, 2017 @ 11:27 am
    Stefano Rebaudo
    Reuters
    AR-170329971.jpg
    Marchionne: "There are 4-5 of us (carmakers) at the global level, if something needs to be done, it will be done." Photo credit: Reuters

    UPDATED: 3/21/17 1:23 pm ET - adds details
    GENEVA -- Fiat Chrysler CEO Sergio Marchionne said on Tuesday he was looking forward to meeting Volkswagen boss Matthias Mueller to discuss a possible tie-up between the two carmakers but added he hadn't seen his counterpart in six to seven months.

    Marchionne has long advocated car industry mergers to share the costs of making cleaner and more technologically advanced vehicles and has repeatedly relayed his desire via the media.

    His comments on Tuesday came in response to a question about Mueller's suggestion last week that he did not rule out merger talks between the German and Italian-American car manufacturers.

    "We are waiting with anticipation," Marchionne told journalists on the sidelines of a meeting in Geneva.

    "There are 4-5 of us (carmakers) at the global level, if something needs to be done, it will be done. I haven't seen Mueller in 6-7 months, but I will go find him at the first opportunity."

    The manager said his company's first quarter was going in line with expectations. He added the group was working with the authorities in the U.S. to understand how the new system for emissions regulations will work.

    Shifting positions

    Both Marchionne and Mueller have been all over the map in recent weeks on the question of meeting to discuss a merger.

    Marchionne, following a meeting with President Donald Trump in Michigan on March 15, said he has "zero interest" in pursuing a merger with Volkswagen, despite first bringing up the possibility earlier in March.

    "I only said that if you were the No. 1 automaker in Europe and somebody combines with another automaker to become the second and gets very close to your position, your very first reaction is to distance the second again," Marchionne said. "We are the only natural combination partner for somebody who wants to do that. If you were playing a chess board game, that's what you would do."

    Marchionne said he'd be open to listening to offers from Mueller.

    "If he wants to come, he knows where I live," he said. "I didn't chase him and I have no intention of chasing him. But if I'm right on consolidation and the fact you need to build scale, we're the natural place to go for him.

    "I will not call Matthias. I have no interest."

    Mueller has vacillated as well.

    “There is no contact at this time between me and [FCA CEO Sergio] Marchionne,” Mueller said during a press conference in Wolfsburg on March 14.

    But Reuters later reported that Mueller, in a later discussion with German reporters, sent mixed signals on talks with FCA.

    "I am not ruling out a conversation," Mueller was quoted as saying. "It would be very helpful if Mr. Marchionne were to communicate his considerations to me too and not just to you."

    "I am pretty confident about the future of Volkswagen, with or without Marchionne," he added.

    Source - http://www.autonews.com/article/201...is-waiting-with-anticipation-to-meet-vw-chief
     
  10. prabhjot

    prabhjot Esperto

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