VOLKSWAGEN/FIAT RUMOURS: DOES IT MAKE SENSE? YES! BUT THERE ARE
VOLKSWAGEN/FIAT RUMOURS: DOES IT MAKE SENSE? YES! BUT THERE ARE SOME OBSTACLES
(PERSONAL VIEW): Acc to Manager Magazin, VOW and F owners would be exploring a
possible takeover deal. We believe the main (obvious) reason for such a deal
would be for VOW to (finally) become a real player in the US market.
Furthermore, VOW made no secret of its interest in Alfa Romeo (90k cars p.a
only). As per the Fiat brand, one could think at first glance that there's a
big overlap with VOW's brands and that a combination makes little strategic
sense... it's actually not true, Fiat sales are mostly focused on small cars
such as Fiat Panda or Fiat 500, with little overlap with VOW's cars.
What would be the obstacles ?
i) VOW is currently working on the simplification of its brands... such a deal
would add 5 to 6 brands to its portfolio, not easy to manage
ii) Brazil: VOW and F are the 2 main players in this market with 20% market
share each: big antitrust issues to manage