After media reports proposed a Volkswagen AG takeover deal for Fiat Chrysler Automobiles, Financial Times has moved to another speculation – the carmaker would tie-up with France’s PSA.
Just like the case with the German Manager Magazin report last week, about the negotiations between VW AG and FCA, both Fiat Chrysler Automobiles and PSA Peugeot Citroen swiftly dismissed the rumor… as a rumor.
“PSA categorically denies every aspect of the FT report on a merger with Fiat,” said a spokesman for the French company. “The group has set out a strategic plan … and that exercise will be our focus for the next two to three years,” he commented. “After that we will see whether further developments need to be considered.”
FCA also commented that no talks between them and the French are on the way for a merger that would have created the fifth-largest automaker in the world.
The newspaper reported that negotiations between the two companies were actively held earlier this year, before PSA entered a tie-up with China’s Dongfeng Motor Group. Financial Times added the talks would resume now, triggering a share rise in both carmakers. Fiat has not yet completed its long in the making merger with US subsidiary Chrysler Group LLC, waiting on the final vote of the company’s shareholders due in August. PSA is also concentrating on a strategy to rebound from financial losses, after it gained 3 billion euro (2.37 billion pounds) from the latest share sale.