Volkswagen Interested in Buying Fiat, Fiat Denies Talks

Volkswagen Interested in Buying Fiat, Fiat Denies Talks

According to a report from a German business publication, Volkswagen has approached Fiat about a possible buy out, though Fiat denies the claims.

The report claims that the Agnelli family, which controls Fiat, is looking to exit the volume car manufacturing business, and is in talks with Volkswagen about a possible buy out. However, a spokesman for Exor, an investment firm controlled by Fiat, told USA Today that no merger discussions between Fiat and Volkswagen were held.

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Volkswagen officials have not commented on the report.

If Volkswagen was to buy out Fiat, it would take over Chrysler and secure itself a strong foothold in the US market, something that Volkswagen has struggled to do. Beyond that, VW CEO Ferdinand Piech has long coveted Alfa Romeo, and would finally take control of the brand. The buy out would also make VW the largest automaker in the world, a goal that company has expressed in the past.

[Source: USA Today]

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