How VW Botched It's Attempt To Buy Fiat And Become The Largest Automaker In The World

How VW Botched It's Attempt To Buy Fiat And  Become The Largest Automaker In The World

Ferdinand Piech, chairman of Volkswagen’s supervisory board, has long wanted to see the VW Group become the largest auto maker in the world. It currently has 12 brands, whose production spans everything from city cars to heavy trucks. 

The world’s largest car maker last year was Toyota with 9.98 million sales, followed by General Motors (9.71m) and the VW Group (9.7m). 

Earlier this year, according to sources at VW, company strategists came up with a plan that would have seen the VW Group expand in size by around 50 per cent and become the unassailable leader in the global car market. 


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chewychewy - 8/4/2014 2:54:08 PM
+1 Boost
Would have gone completely against the VW mantra of using a few key scalable and modular platforms for almost all products. Would have taken a few generations to completely integrate.


MattDarringerMattDarringer - 8/4/2014 3:16:52 PM
0 Boost
I think it's funny that there is an assumption that Auto Union would have made 15 million cars. More likely, brands would be axed. SEAT is struggling. Lancia is dead. Alfa Romeo exists only in vapor. Chrysler would compete with VW. VWAG doesn't like affordable RWD...bye Dodge. Yes Auto Union would have sold more cars but it's not as simple as adding the two volumes together.


scenicbyway12scenicbyway12 - 8/4/2014 3:50:29 PM
+2 Boost
I really think VW has peaked.


MattDarringerMattDarringer - 8/4/2014 6:38:00 PM
+1 Boost
And is in decline


dumpstydumpsty - 8/5/2014 4:07:38 PM
+1 Boost
I think VW made the right decision & backed away from the Fiat purchase. Remember in 2005(?) GM opted to pay Fiat a "put" option in lieu of buying the fledgling Italian automaker at the time. The issues of product integration was just too large & costly & they'd been competing against each other. A lot of Fiat facilities would have been shut down as well with either of those purchases.

A VW-owned Chrysler would have been interesting though.


mini22mini22 - 8/4/2014 7:04:05 PM
+2 Boost
VW has too many model lines as it is. If VW were to purchase Fiat/Chrysler there would be a long gestation period integrating
platforms. This would probably have to go through some model cycles.
All Fiats would be based on VW platforms. It is doubtful that VW would keep any of the current RWD platforms. Most likely they would share a Passat size platform. The Chrysler muscle car era would be over. Alfa's would most likely be based off Audi platforms for the larger cars and Seat platforms for smaller models. Positive note-It gives VW instant decent market share into the US market place. Negative-Overly complicated production process.



chewychewy - 8/4/2014 10:57:23 PM
+2 Boost
Exactly, the RWD Chrysler platforms are the only thing that FAC has that tops Volkswagen in excitement but those are early 2000s or 90s Mercedes based platforms that are on their last legs.

Honestly the whole VW profit thing seems like a giant freakout, VW has just spent quite a bit of money developing the MQB but the way it was designed is that a bunch of future models should branch out for very little cost in the next few years. If the plan works out the next few years should yield new models at a minimum of expense and based on an excellent platform.


MattDarringerMattDarringer - 8/4/2014 7:45:34 PM
+3 Boost
What's interesting is ponder is that Chrysler could have helped VW in figuring out the NA market.

Chrysler knows what products it needs but has historically been too cash strapped to make them happen. The fact that the Alfa Romeo under the Dart, 200, and Cherokee turned into three mainstream American products suggests that Chrysler knows what it's doing.

It would never have happened, but imagine what Chrysler could have done with MQB! VW would never have admitted that anyone other than VW knows anything.

I'd love to see FCA get VERY cozy with Mazda. Talk about a win/win.




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