Fiat Chrysler CEO Sergio Marchionne is confident Volkswagen will eventually approach him about merging the two automakers together, Bloomberg reports.
Marchionne’s words come immediately after PSA Group’s acquisition of General Motors’ Opel brand, which officially made PSA the the world’s second largest automaker behind VW AG. Marchionne believes PSA’s purchase of Opel will put the pressure on VW to expand its business and that FCA is the best option for a merger.
“I have no doubt that at the relevant time VW may show up and have a chat,” Marchionne said this week on the sidelines of the 2016 Geneva Motor Show.
Marchionne is an outspoken supporter of consolidation within the automotive industry. The Italian-Canadian executive says automakers are wasting money by developing their own versions of what are essentially identical products. With profits plummeting and overhead costs swelling amid the arrival of more high-tech and innovative vehicles, consolidation should become a trend within the industry in coming years.
Carlos Ghosn, CEO of Renault SA, which acquired Mitsubishi last year and entered a partnership with Nissan Motor Co. back in 1999, shares Marchionne’s belief that automakers must merge together or risk a much dire situation.
“The industry is moving towards consolidation,” Ghosn told Bloomberg. “You’re going to see more and more players trying to gain in terms of scale. It’s logical because of all the investments we need to face.”