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  • William Maley
    William Maley

    Muller: On Second Thought, We Would Be Willing To Talk With FCA

      Change of heart?

    It was only a week ago that Volkswagen CEO Matthias Müller rebuffed FCA's CEO Sergio Marchionne'sidea of having talks between Volkswagen and FCA.

    “We are not ready for talks about anything. I haven’t seen Marchionne for months,” said Müller.

    “We have other problems.”

    This week, Müller seems to have changed his tune. Speaking with reporters at the company's annual press conference, he said that he was open to talks with FCA.

    "I am not ruling out a conversation," Müller told reporters. “It would be very helpful if Mr. Marchionne were to communicate his considerations to me.”

    What changed? There are two possibilities. First is the sale of Opel and Vauxhall to PSA Group, which makes them the second-largest automaker in Europe. Volkswagen could see this as a threat and might consider teaming up with another automaker as an additional layer of protection. The other comes from the massive costs as a result of the diesel emission mess. Volkswagen has so far agreed to pay $25 billion in fines and buyback programs.

    Source: Reuters


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    And they are not done yet. With the MIT study showing increase in health issues and death world wide, I expect countries to go after VW in court. I expect additional payouts and they just might need to tie up with FCA to find a way to spread the cost around.

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    Granted the business laws are different in Europe, but how would merging/divesting/forming a new corporate entity to shed as much liability as possible for VW to avoid from the fallout of $25 Billion in fines and other future costs from this scandal?  Is Sergio REALLY that desperate for a merger with ANYONE that taking on the legal risks from VW as part of the deal going to be worth the effort?  At this point, it would be better to make a trade for Tony Romo with the Cowboys than merge with VW.

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    Sergio Marchionne is playing the automotive equivalent of Liar's Poker.

     

    But how many dollar bills has he already dealt? And it seems like no one is running cold cash down the drain like Volkswagen, so why chase that rabbit hole?

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    Listening to, and actually considering a merger are 2 different things.  Of course it is worth listening, but they may have zero interest in FCA.  I think Jeep gives VW interest, they'd probably want that brand and some more of the US market.

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    2 hours ago, smk4565 said:

    Listening to, and actually considering a merger are 2 different things.  Of course it is worth listening, but they may have zero interest in FCA.  I think Jeep gives VW interest, they'd probably want that brand and some more of the US market.

    Jeep & Ram are the only two things I can see VW wanting from FCA.

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    52 minutes ago, dfelt said:

    Jeep & Ram are the only two things I can see VW wanting from FCA.

    Completely agree. Nothing else is of any value to them. They already have Audi and Lamborghini to not need Maserati. VW could use the Challenger/Charger though but no need to keep a brand around for 2 cars. Next thing you know we'll be looking at a 2.0T FWD Charger. lol

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    The Gergio platform would have value to them, they could use it to make a mid size Dodge Charger and perhaps a Dodge crossover, bring the Pacifica to Dodge and it pumps some life into that brand and gets them US market sales that VW brand doesn't get.

    VW loves luxury brands, maybe they can see Alfa and Audi co-existing, I don't think they have any use for Maserati, Porsche, Bentley Lambo etc are better than them.

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    I could see VW using Jeep and Ram and the RWD architecture while FCA gets the MQB architecture to make real competitive small cars. 

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    13 hours ago, smk4565 said:

    Now Sergio says he has no interest in merger, haha.  That guys is nuts.

    Early set Alzheiners? 

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