Fiat Chrysler’s merger options dwindle as Volkswagen rejects overtures
GENEVA: Fiat Chrysler boss Sergio Marchionne’s attempts to find a partner were frustrated for a second time in as many days on Wednesday, as Volkswagen joined General Motors in dismissing any interest in talks with their smaller rival. Marchionne said on Tuesday that European market leader VW would be hardest hit by PSA Group’s purchase of Opel, which will create a stronger European No. 2, and the pressure could prompt VW to sit down with FCA.
But VW chief Matthias Mueller was quick to rebuff the overtures, saying his company had enough on its plate already as it battles to recover from a diesel emissions scandal.
“We are not ready for talks about anything ... we have other problems,” he told Reuters on the fringes of the Geneva auto show on Wednesday. “I haven’t seen Marchionne for months.”
Marchionne has long advocated car industry mergers to share the costs of making cleaner and more technologically advanced vehicles and on Tuesday stressed deals were as vital as ever.
“You need to achieve scale or we will end up delivering an incredibly poor return and margins on this business. We need to fix this,” he said, referring to the wider auto industry.
But VW chief Matthias Mueller was quick to rebuff the overtures, saying his company had enough on its plate already as it battles to recover from a diesel emissions scandal.
“We are not ready for talks about anything ... we have other problems,” he told Reuters on the fringes of the Geneva auto show on Wednesday. “I haven’t seen Marchionne for months.”
Marchionne has long advocated car industry mergers to share the costs of making cleaner and more technologically advanced vehicles and on Tuesday stressed deals were as vital as ever.
“You need to achieve scale or we will end up delivering an incredibly poor return and margins on this business. We need to fix this,” he said, referring to the wider auto industry.
