VW and Fiat Rumored to Be in Merger Talks

mergerVolkswagen and Fiat are two of the largest automotive conglomerates in the world, and based on a report from the Detroit Free Press, the two might be in merger talks. Predictably, Fiat denied that any discussion took place between either them, or their controlling shareholder company Exor. Exor is the company Fiat’s Agnelli family set up. Shares of Fiat were up based on the rumor of the merger.

Fiat is currently in their own merger with Chrysler Group. Set to continue after a shareholder meeting on August 1st, Chrysler products are key to Fiat’s future strategies. Chrysler, according to the Detroit Free Press, would also be pivotal to Volkswagen expanding their influence and increasing sales in the United States. Volkswagen has also failed to comment on the story.

We imagine the biggest hurdle would be regulatory approval in the United States. A combined Volkswagen and Fiat car company would create a massive brand and potentially trigger scrutiny from the United States government. Another hurdle would be Sergio Marchionne himself. He did challenge VW chairman Ferdinand Piech to a “showdown at dawn” during the 2012 Paris Motor Show. We’re going to classify this as an interesting rumor, and will keep you informed if things change.

Check out our latest 0-60 of the Fiat 500 Abarth (with the automatic transmission) below.

Chad Kirchner

Chad Kirchner is a freelance automotive journalist with a sincere passion for the industry and helping people. He’s a member of the Midwest Automotive Media Association and the Texas Auto Writers Association. When not writing about the latest automotive news or vehicles, you can catch him at car shows around the country. Be sure to check him out on social media, including Google+ and Twitter.