The newly formed Fiat Chrysler Automobiles has already seen its first big rumor – a reported tie-up with the world’s second largest automaker – the Volkswagen Group.
Although some investors pondered the idea and decided they liked it, both Volkswagen AG and Fiat’s controlling family officials openly denied there were any negotiations. So, there’s no surprise that FCA’s chief executive, Sergio Marchionne, has also moved to dismiss the speculation – saying the possibility was never on their agenda.
A German magazine reported earlier this month that Volkswagen Chairman Ferdinand Piech, a member of VW AG’s ruling family, had ongoing discussions with FCA’s controlling family – the Agnellis. Fiat and Exor – the family holding that has 30% of FCA – already denied the report and Volkswagen said it had no takeover ideas at the moment.
Marchionne further discussed the approaching Fiat shareholders vote on the Fiat Chrysler Automobiles merger, while also saying the company expects to keep its term of listing on the New York Stock Exchange in the first two weeks of October.
The CEO added that second-quarter earnings, due out next week, are expected to fall in line with the earlier predictions, meaning there will be no losses for the company for the April-June period.