Fiat, VW Deny Merger Report

Fiat SpA and Volkswagen AG have denied a report by Germany's Manager Magazin that the two companies are discussing a possible merger.

Manager cites unidentified company sources who claim VW Chairman Ferdinand Piech has had several talks with associates and members of the Agnelli family. The family controls Fiat through the 30% equity held by its Exor holding company.

The magazine says the merger would allow the Agnelli family to control Fiat's Ferrari supercar unit but withdraw from Fiat's other automotive operations. Fiat's Chrysler unit would help VW revive its sales in the U.S.

Exor, Fiat and VW all deny any such talks have been held or are planned. Manager concedes there would be numerous hurdles facing such a merger.