FCA, VW Merger Would Impact North American Market

A merger of Fiat Chrysler Automobiles and Volkswagen would have an immediate impact in North America.

University of Windsor professor and auto industry analyst Tony Faria says merger is probably not the correct term to use.

He says the German automaker has long wanted a stronger purchase on the North American market and the hook-up would solve one issue.

"Fiat Chrysler would remedy their North American issue right away, with a bunch of SUV products which Volkswagen doesn't have.  olkswagen right now is announcing their intention to develop a bunch of truck based SUV CUV products," says Faria.

He says VW would end up as the prime owner of the joined automaker.

"In this case Volkswagen would clearly be taking over Fiat Chrysler and it could do it fairly easily by acquiring all the stock of the Agnelli family who own 30% of Fiat Chrysler," says Faria.

He says size matters and this would put VW well out in front.

"Getting together with Fiat Chrysler, Volkswagen suddenly goes from a company with a annual sales of 10.4-million vehicles to about 15-million.  It would put them well out in front of the number two and three companies Toyota and GM," says Faria.

He says the brand identity of the products in the two automakers would not change a lot immediately.

Faria says the real value is in the sharing of vehicle platforms and manufacturing capacity.