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Sunday, July 20, 2014

Volkswagen Considering Acquisition of Part of Fiat-Chrysler?


They are some of the largest car companies in the world, with many brands that have storied histories and some that compete directly with one another, but one massive auto conglomerate would like to eat another conglomerate whole.

According to the European motoring outlet Autoevolution, Volkswagen AG is in talks with Fiat-Chrysler for the former to acquire either some or all of the latter.
 This comes months after Fiat-Chrysler reorganized itself with a new name (FCA) and new logo, as well as the prospect of leadership moving from Detroit to Italy.

Volkswagen GTE

Both companies deny the claim of these talks, but Autoevolution cites claims from a German magazine that the two met. If the claims are believed to be true, the talks consisted of VW’s interest in Fiat’s Alfa Romeo.
 The small Italian brand has had mixed success in its return to the U.S., which is spearheaded by the 4C (shown below). According to the report, Fiat CEO Sergio Marchionne is not interested in selling Alfa, so the subject was a non-starter.

Alfa Romeo 4C

These rumors certainly seem far-fetched, but it sheds some light on similarities between two of the largest automakers in the world. They both have a great number of brands, and have an “in-the-family” approach, where parts and engineering are cleverly shared across brands.
It seems FCA seems to embrace its other brands, while it has been said that some divisions (such as Lamborghini) like to pretend that they are not part of VW.

It is greatly suspected that VW might become the world’s largest automaker this year, so as Volkswagen grows, we will have to watch and see if it gobbles up any of its competitors.