US analyst says Volkswagen AG merger with Fiat Chrysler Automobiles could be a great deal image

John Krafcik, the former manager of Hyundai’s American unit and currently the president of TrueCar says a new analysis suggests FCA and VW AG are like the automotive equivalent of soul mates.

The comments were made during an appearance at the Automotive Press Association in Detroit, with Krafcik saying that if the two companies would merge (they were rumored, but denied vigorously) the end-result would be “well-balanced” and “highly profitable.” TrueCar is a vehicle pricing service that has increasingly grown in importance over the past few years, roughly guiding today 4% of the new vehicle purchases in the US.

The company has also developed a business model that figures out the potential of major carmakers and their product portfolios by closely examining their profit and revenue potential when it comes to four critical vehicle segments: cars, utilities, pickups and premium. TrueCar found that – at least when talking about North America, Fiat Chrysler is very strong when it comes to SUVs and pickups, complementing Volkswagen’s foothold in the passenger car (VW) and premium segments (Audi and Porsche).

Ultimately, the idea of a merger between the recently established Fiat Chrysler Automobiles NV and Volkswagen AG might never materialize, especially if we consider the opposition that could come from Chrysler employees. The latter still remember the ill-fated 1998 “marriage” with another German power – Daimler AG.