Topic: VW eyeing Fiat-Chrysler (Rumours or Not ?)

[redman]

According to Wards Auto article http://wardsauto.com/blog/fiat-chrysler-could-be-good-fit-vw

Reuters http://www.reuters.com/article/2014/07/17/us-volkswagen-fiat-spa-idUSKBN0FM0RU20140717?feedType=RSS&feedName=businessNews&rpc=76

VW Chairman Ferdinand Piech has eyes on Alfr-Romeo and are willing to buy Fiat-Chrysler minus Ferrari from the Agnelli the controlling stakeholder in Fiat-Chrysler.
Fiat shares are worth $13.1 billion US & climbing amongst speculation.

That would be a blow to Fiat-Chrysler CEO Sergio Marchionne who has done some positive change at Chrysler and continues to show further progression and sales.

[Fobroader]

Awesome....Chrysler with even more electrical issues...wooo hoo 

[PJungnitsch]

Makes a lot of sense in many ways, especially in North America. Instantly gives VW a lot of things they don't have: pickups, jeeps, minivans, plus a whole line of 'peoples' cars and SUV's. Plus lots of dealers in towns they don't.

And world domination in vehicle production, what more could zee Germans want?

[redman]

I don't get it, what would this give VW? I must be missing the obvious.

...Ward Auto ..."The acquisition would instantly solve Volkswagen’s deficiencies in the U.S., where its Audi brand is soaring but its VW marque is spinning its wheels. Relying on Chrysler for the volume end of the market would allow VW to focus on being a more-premium brand positioned just below Audi. VW would be the Buick of the stable, while Chrysler carries out its game plan to reposition against Chevy and Ford.
Chrysler also is strongest where VW is weakest: namely pickups and SUVs. Acquisition of the Ram and Jeep brands would give Volkswagen instant credibility in both sectors."

[Snowman]

VW wants to claim number one over Toyota. This would do it.

[redman]

VW wants to claim number one over Toyota. This would do it.

German domination....by any other name. First the E.U.....(then FIFA 2014) and now #1 volume automotive co. what next people ? (This character states pimp but looks more like a guy in a traditional German hat to me)

[Sir Osis of Liver]

New VW is the old GM.

[Snowman]

New VW is the old GM.

Except VW will win, und u vill like it!

[tooscoops]

vw must have been real impressed with that routan that dodge built for them! ha!

i can't see it happening... it makes sense in some ways, but unless they are willing to overpay, i don't see why they would sell it.

[Julie]

VW wants to claim number one over Toyota.

This. I'm not sure it has anything to do with VW being German. I think it has more to do with their ambition. 

Personally, I don't find anything impressive about trying to be #1. It just means you've managed to be a huge, giant conglomerate. I'd be more interested in an automaker that wants to build great cars.  (But I guess that's business.)

[tooscoops]

yeah, the big three really showed that being the biggest (and second and third biggest) really does make you more profits......

wait a minute...

never understood it either.. just big egos and guys getting paid millions who get added bonuses by increasing market share a point even if the overall profits are down.

[aquadorhj]

yeah, the big three really showed that being the biggest (and second and third biggest) really does make you more profits......

wait a minute...

never understood it either.. just big egos and guys getting paid millions who get added bonuses by increasing market share a point even if the overall profits are down.

This. It's typical in business from what I can tell (in my very limited knowledge) - the product doesn't matter, only the numbers, profit margins and/or return to investors.

what's so good about Alfa that VW wants?  not counting the historical models, NOTHING!!!  maybe exterior design, but that can be solved by hiring good design team... not buying a 11 billion dollar company...


But they all forget, over and over and over that ultimately, it's the product that keeps the company going...  not the other way around.

and those who don't learn from history is doomed to repeat it.

[redman]

VW wants to claim number one over Toyota.

This. I'm not sure it has anything to do with VW being German. I think it has more to do with their ambition. 

Personally, I don't find anything impressive about trying to be #1. It just means you've managed to be a huge, giant conglomerate. I'd be more interested in an automaker that wants to build great cars.  (But I guess that's business.)

When you're name is Ferdinand Piëch the grandson of Ferdinand Porsche and the chairman of the supervisory board of Volkswagen Group, it's all about status & power.
Being born silver-spooned and making ridiculous statements like "every man would want to own a Volkswagen Phaeton."
He apparently has no idea the 100K+ VW's make no business sense and are not financially achievable by the average man.

In autumn 2013, The Economist placed Phaeton into the report on Europe's biggest loss making cars

[tooscoops]

http://www.allpar.com/news/index.php/2014/07/last-weeks-out-of-mind-experience-a-fiat-vw-merger

this goes over a lot of the issues with this potential "merger" or whatever...

just makes no sense except for in small areas of the business. looked at from further back and it just doesn't work.

[blotter]

I think it was Sergio Marchionne himself who said something along the lines that there would be massive corporate consolidation in the future when they starting taking over Chrysler.   He claimed the market could only sustain so many car companies (parent companies) and envisioned lots of mergers in the future.

While I agree this doesn't make total sense, like Snowman said, VW wants to be #1 and that's all this rumor is all about.    I also agree with other comments, that being #1 isn't really potentially the best place to be.

Any company growing it's brand portfolio you'd think would be very aware of the "GM problems"

[tooscoops]

and the fact that fca combined with vw would be a monopoly in many markets... not so legal.. what's the point in being so big that you have to decrease sales in order to get around the red tape?

[Snowman]

and the fact that fca combined with vw would be a monopoly in many markets... not so legal.. what's the point in being so big that you have to decrease sales in order to get around the red tape?

Or get rid of the unprofitable dogs in FC...I'm sure there are a few 

[Julie]

VW wants to claim number one over Toyota.

This. I'm not sure it has anything to do with VW being German. I think it has more to do with their ambition. 

Personally, I don't find anything impressive about trying to be #1. It just means you've managed to be a huge, giant conglomerate. I'd be more interested in an automaker that wants to build great cars.  (But I guess that's business.)

When you're name is Ferdinand Piëch the grandson of Ferdinand Porsche and the chairman of the supervisory board of Volkswagen Group, it's all about status & power.
Being born silver-spooned and making ridiculous statements like "every man would want to own a Volkswagen Phaeton."
He apparently has no idea the 100K+ VW's make no business sense and are not financially achievable by the average man.

In autumn 2013, The Economist placed Phaeton into the report on Europe's biggest loss making cars

What you're saying sounds a lot like the real reason...

[redman]

^^^^^
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    ^

[EV-Light]

VW wants to claim number one over Toyota.

This. I'm not sure it has anything to do with VW being German. I think it has more to do with their ambition. 

Personally, I don't find anything impressive about trying to be #1. It just means you've managed to be a huge, giant conglomerate. I'd be more interested in an automaker that wants to build great cars.  (But I guess that's business.)

When you're name is Ferdinand Piëch the grandson of Ferdinand Porsche and the chairman of the supervisory board of Volkswagen Group, it's all about status & power.
Being born silver-spooned and making ridiculous statements like "every man would want to own a Volkswagen Phaeton."
He apparently has no idea the 100K+ VW's make no business sense and are not financially achievable by the average man.

In autumn 2013, The Economist placed Phaeton into the report on Europe's biggest loss making cars

Sometimes you make business decisions that don't make business sense but are part of an overall strategy - such as, make VW look more upscale. 'Would' or even 'Will' doesn't mean that they can.