The VW/FCA Merger And Its Impact On The American Market, In One Chart

Derek Kreindler
by Derek Kreindler

Despite repeated denials from all parties, I’ve yet to give up on the idea that V olkswagen and FCA will eventually come together in an, ahem, Auto Union of sorts. Tim Cain’s chart shows us why there are synergies for both parties.

Yes, a combined VW/FCA would be just behind GM in overall market share for the month of June, and one month does not make the case for a merger. But there are plenty of benefits from a product portfolio standpoints, like a strong SUV, truck and commercial arm for VW, while FCA would finally get the global scale it’s been chasing so desperately, as well as the advanced technology to help its brand portfolios thrive well into the next era of automotive sales and manufacturing. Interestingly enough, Automotive News envisions a scenario where FCA’s hugely successful Latin American operations are sold off, perhaps to the Chinese.

The merger would also solve a huge problem for Volkswagen, namely the lack of traction its had in the American marketplace. America is the one major region where VW has failed to really establish itself, and by adding FCA’s brands, it could essentially buy its way in to further volume and a large dealer network, in addition to what it already has with Volkswagen, Audi, Bentley and Bugatti.

Oh, and Ferdinand Peich would finally get Alfa. But not before a massive web of complex financial, managerial and logistical matters are ironed out. Don’t expect anything to happen for a while – but I’m still pacing my bets on “yes”.

Derek Kreindler
Derek Kreindler

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  • TMA1 TMA1 on Jul 21, 2014

    Finally, we'll be able to buy Routans again.

  • Morbo Morbo on Jul 21, 2014

    My only take-away from the pie chart is that 15+% American market share appears to be some sort of threshhold for the car companies. Honda, Nissan, and H-K are going to have to grow and/or buy up to that. Maybe they buy some of the VW-FCA reject brands to grow upmarket? Or Nissan-Renault decide to eat some of the smaller Japanese manufacturers they partner with like Mitsu? Maybe Honda stops building ugly Acura's with a shield theme and instantly double market share?

    • See 3 previous
    • Th009 Th009 on Jul 21, 2014

      @VoGo Ghosn actually understands the car business. He turned around two struggling car companies -- in highly regulated countries -- without the help of a bankruptcy, or any handouts from governments or competitors.

  • PrincipalDan PrincipalDan on Jul 21, 2014 The only retort that I can think of to this crazy idea is a video filled with business buzz words.

  • HerrKaLeun HerrKaLeun on Jul 21, 2014

    I think it only makes sense from an North- American perspective. Everywhere else VW is better than FCA. Ram is not important outside America. Fiat may be big in Brazil, but is being eaten alive in Europe. With MQB VW doesn't need any of the crap FCA platforms. And the reputation of FCA isn't something they need to purchase. RAM and JEEP and maybe the Van are the only valuable things. But buy all the other ballast for that? I'm sure not a VW fan. But VW has more to lose than to gain. Of course, Piech wanted the Phaeton and W8 Passat despite it not making sense. So he may waste 20 Bio just to once own a Lancia....