VW partnership with Fiat Chrysler Automobiles not out of the question

For a while now, industry insiders have speculated a merger between the two auto giants - the Volkswagen Group and Fiat Chrysler Automobiles (FCA). But until now, there had been no word from either company.

At the Geneva motor show this year, FCA boss Sergio Marchionne discussed the possibility of such a merger, when talking about the union of the PSA Group and GM Europe, making them Europe's second largest car maker. According to him, a partnership between Volkswagen and Fiat could be what the former needs to maintain their superior position in the market. Marchionne has always spoken out in favour of auto mergers, citing reasons such as quality products and environmental health. "You need to achieve scale or we will end up delivering an incredibly poor return and margins on this business. We need to fix this," he said.

When asked to comment on the issue at the Volkswagen Group’s annual press conference, VW Group CEO Matthias Muller said, "There has been no contact at this point between Mr. Marchionne and me, but I have never said I would exclude it.” According to Muller, size does not matter for VW and it aims to be a successful manufacturer in every aspect.