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Posts Tagged ‘auto consolidation’

Is Fiat Chrysler Looking for a Merger Partner?

Deal may occur before CEO Marchionne’s ’19 retirement.

by on Apr.14, 2015

FCA CEO Marchionne appears interested in pulling off another major deal before his 2019 retirement.

Senior officials at Fiat Chrysler Automobiles are sending out signals that they’d like to find another partner, barely a year after the trans-Atlantic alliance was officially completed. Such a deal could be come together – if a willing partner can be found – before CEO Sergio Marchionne’s planned retirement in 2019, according to various sources.

Marchionne has made a number of comments in recent months underscoring his desire to address fundamental problems that could limit FCA’s ability to compete in an increasingly competitive global auto industry.

We Have a Deal for You!

Now, FCA Chairman John Elkann has weighed in. While he didn’t specifically say his company was on the prowl, Elkann wrote shareholders at Exor, which owns 29.2% of FCA, “I’m convinced that the industry needs and will see more consolidation in the future.”

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VW Warns It “Will Not Be Pushed” By Porsche

Big maker delays merger talks, could bolt entirely.

by on May.18, 2009

Volkswagen "will not be pushed" into a hasty marriage with Porsche, but behind the scenes, the dispute may reflect a familial squabble with Ferdinand Piech, a Porsche heir and senior VW board member, at its center.

Volkswagen "will not be pushed" into a marriage with Porsche. Behind the scenes, the dispute may reflect a familial squabble with Ferdinand Piech, a Porsche heir and senior VW board member.

Saying he “will not be pushed” into hastily hammering out a merger with the smaller Porsche, Volkswagen CEO Martin Winterkorn has postponed a meeting between the two companies scheduled for today.

Porsche is downplaying the delay, insisting that other meetings with VW are still going ahead, “in a normal manner,” according to a statement on its website.  But a spokesman for VW, in Europe, said that there are no further talks planned, for the moment.

Citing the need for “full transparency,” Winterkorn stressed that he does not want to “risk Volkswagen’s financial stability and sovereignty,” with a hastily-arranged corporate marriage.  In a letter to the automaker’s employees, first obtained by the Associated Press, Winterkorn said that, “For any association between Volkswagen and Porsche, we have to systematically analyze the position of Porsche in order to get a clear picture of the real situation.” (more…)

VW and Porsche Agree to Merge

The latest sign of a global industry consolidation.

by on May.07, 2009

The ties between Porsche and Volkswagen date back to the latter's founding, the Beetle developed by Ferdinand Porsche. More recently, they've worked together on the VW Touareg and Porsche's Cayenne, the GTS version shown here.

The ties between Porsche and Volkswagen date back to the latter's founding, the Beetle developed by Ferdinand Porsche. More recently, they've worked together on the VW Touareg and Porsche's Cayenne, the GTS version shown here.

In the latest sign of a rapidly accelerating global automotive consolidation, Volkswagen and Porsche have agreed to merger.

What’s unusual about the deal is that here the Goliath, Europe’s largest automaker, is effectively being taken over by the industry’s David, the small but hugely profitable luxury manufacturer.

That something would happen between the two German manufacturers has been anticipated for months, as Porsche has steadily expanded its stake in the larger automaker, buying up 51 percent of Volkswagen stock.

But VW hasn’t been an entirely passive target.  Its regional government, Lower Saxony, has long held a controlling 20 percent “golden” share in the company and had originally been expected to block a full takeover in order to protect both its investment and the huge job base at Volkswagen’s headquarters factory town.  Wolfsburg sits just miles from where the dividing line between West and East Germany used to run.

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