FCA Would Benefit Most From Deal With VW, Morgan Stanley Says
FCA would benefit most from a deal with Volkswagen, Morgan Stanley says in note, citing recent comments by CEO Sergio Marchionne and noting both sides have denied talks.
- Questions whether VW would want to add to its current challenges by taking on FCA restructuring and integration
- VW doesn’t need another European brand, but would benefit FCA’s U.S. presence, especially Jeep SUVs
- Technology benefits would flow mostly to FCA, which hasn’t matched VW’s R&D spend
- VW unions may be too strong to allow consolidation
- FCA probably will continue to explore all possible routes to maximizing value