A very serious German magazine Manager Magazin, produced a small earthquake in the automotive world by publishing an article citing sources from the VAG and FCA, which stated that the German giant is in talks to take over the Italian-American alliance. After all, it's true or not?
Volkswagen Group has a clear goal: he wants to become number one in the world, so we have to overcome Toyota and General Motors. Because of the problems that GM has (and affecting picture every day), most likely German concern will reach second place smoothly quickly.
But it will be extremely difficult to unseat the Japanese company, which enjoys great trust among both customers and the business environment. So, according to some analysts, Volkswagen boss would need a movement of "blitz-krieg" such as a major acquisition that would ensure immediate jump in first place.
Who is the boss of VW? Ferdinand Piech, 77 years old, considered a talented manager and a great vision. Very few know that Piech's secret dream is to bring VW first in world car sales (if managed in Europe, it's just a matter d time to succeed in the world, not ?!).
German apparently wants to remain known in history as the leader of a giant car with equivalent ba sources say that the future super car corporation should be called Auto Union. Yes, the same name that was in the 30s group of four German car companies (DKW, Horch, Audi and Wanderer) and subsequently was converted to Audi.
Marchionne wants to save millions of jobs, but shareholders are worried that they will make more money. Dilemma ...
On the other hand, Chrysler went through bankruptcy and Fiat group seemed in freefall. That was until Marchionne great idea to create FCA (Fiat Chrysler Automobile) by buying the American company and the rethinking of strategies designed to increase sales of the new company very much, to avoid financial collapse.
Through a delicate game of progressive purchase and relocation of production, Marchionne managed to increase by about 5% FCA actions. But Agnelli family, which owns 30% stake in FCA, not the kindly plan "belt tightening", which implies that the next five years investors may not receive dividends.
So that started rumors in the Italian press about the possibility that Agnelli family to sell soon and good money as participation in FCA, remaining, however, the crown jewel - that Ferrari super car manufacturer exclusivity little meaning and profits of about half a billion euros annually.
In terms of business, global domination is absolutely normal. Especially after Germany won the 2014 World Cup, not ?!
So on one hand we have a proud German chief who wants to become the leader of the largest car ever existing, and the other side a group of frustrated investors who would prefer immediate gain rather an uncertain future. Even is advanced and the transaction amount to 5 or 6 billion.
The Volkswagen not shy to boast more than 20 billion "in cash" which can put at stake whenever some potentially profitable investment (in fact, last purchase was Scania). Marchionne's plan for rapid recovery of FCA, sounds very appetizing for any manager with flair.
Except that the idea of buying the VAG FCA was quickly denied by both sides, the Germans and Italians. But PR phrases like "we do not know about discussions of management of the two companies regarding a possible transaction" is not likely to go out of all the rumors.
Do you feel that the tactics of denial is already obsolete?
As other analysts warn, Piech's days as head of VW Group are numbered, so has every reason to hurry. On the other hand, although the German concern sits very well with cash-flow recently announced a program to reduce costs by 5 billion a year for better profitability (given that VW stands excellent chapter profits).
So going to see that Volkswagen will purchase Fiat-Chrysler Automobiles or is it just a rumor deliberately released to influence stock and check the reaction of investors and business environment?