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VW Open to Merger with Fiat


J-150

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So I wonder if PSA's acquisition of Opel Vauxhall now makes it a bigger contender in Europe against VW group

and does that increase in PSA's size now urge VW to do another deal to maintain a superior margin...

 

That's the whole reason PSA did this deal... to make sure it is #2 in Europe behind VW. PSA is a regional car company so the only way it survives is if it can be #1 or #2 in a big market. So buying Opel secures PSA's competitive position in Europe.

 

VW's going to whatever it does because of opportunities outside Europe. They are not that worried about PSA because the combined PSA-Opel still lags VW Group by a significant margin. Basically, what I'm saying is that VW buying FCA is not going to make a bean of difference in the competitive landscape in Europe. VW's evaluation of FCA will be what it can do in North and South America with FCA assets, and potentially what that means in China since VW Group already maxed out with 2 JVs. What would become GAIC Jeep is an open question if VW (or PSA for that matter) buys FCA.

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