Volkswagen is one of the recent automobile companies to turn down any possible acquisition and/or partnership with Fiat Chrysler last Wednesday. FCAU’s CEO Sergio Marchionne has also looked to talk to General Motors (GM) for partnership but was then declined. It is the second time over the year that FCAU pursued GM with a possible partnership and its first rejection with Volkswagen.
VW CEO: “… We Have Other Problems”
Volkswagen’s CEO Matthias Mueller said in an interview at the Geneva Motor Show that, “We are not ready for talks about anything…. We have other problems. I haven’t seen Marchionne for months.” Mueller’s ‘other problem’ with Volkswagen includes legal proceedings, fines, recalls, and tantamount of issues that are tied in with the continuing diesel scandal.
The German automaker is set to release its annual fiscal report this coming March 14,
FCAU, GM’s Continues Talks
VW was FCAU’s second option for a partnership after GM adversely denies the automobile company two times in over a year. The acquisition was resurfaced when news about GM’s announcement last week that they are in the process of clearing things with Peugeot on selling its Opel brand.
FCAU’s CEO Marchionne also said in an interview during the Geneva Motor Show “I may shamelessly try knocking on the GM door again, or any door, if I thought it was a good thing to do for the business, without even blinking, I could.” In response, GM’s spokesperson said ”GM’s board examined this a long time ago and concluded it made no sense for the company’s customers, shareholders or employees. That is still true today.”
Marchionne has been dedicated to bringing a consolation to the automobile industry, the erstwhile letter he gave to GM last 2015 is the by-product of the continued pursuing from GM and VW. The letter from way back made GM board
FCAU’s Sales Down on a Year-On-Year Period
Fiat Chrysler has significantly plummeted; its sales were down 10% year over year in the last month. Most notable lashes are from the sharp declines from Jeep Compass’ sales, along with the Chrysler 200, and more units that are left on the shelves. It is also ranked as one of the top 5 lowest spot in the latest J.D. Power 2017 Vehicle Dependability Study with its
FCAU also adds the series of the company’s woes from the US Securities and Exchange Commission and state attorney general future investigation for its diesel-powered vehicles. The investigation follows several allegations from the US Environmental Protection Agency or EPA that has been installing software that doesn’t halt its diesel-powered Jeep and Ram models to exceed pollution limits. The same dilemma that puts Volkswagen on the ropes last year, nevertheless, FCAU continues to fight for the sales of its 2017 104, 000 diesel powered autos, trucks, and SUVs.
"In western countries we believe that Volkswagen remains the main candidate for M&A, but after diesel gate, which likely stopped everything for a while, the top candidates for an FCA deal moved to the East (Koreans or Chinese), with all the risks of timing and political consequences that they would bring," Angelo Meda, the head of equities from the
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