Krafcik Floats the Idea of a Fiat-Chrysler-VW Merger

John Krafcik, former CEO of Hyundai Motor America, says a merger between Volkswagen AG and the just-formed Fiat Chrysler Automobiles NV would be "absolutely brilliant."

Krafcik, now president of TrueCar Inc., an online car-buying service, tells the Automotive Press Assn. in Detroit the two companies have "a natural attraction to each other."

He also marvels at the balanced annual revenue portfolio that would result from such a union. He figures the combined companies would generate $36 billion from SUVs, $20 billion from passenger cars, $17 billion from pickup trucks and $15 billion from luxury cars.

In July the two companies denied a report by Germany's Manager Magazine and the U.K.'s Financial Times that they were in merger talks. But FCA CEO Sergio Marchionne told Bloomberg News earlier this year that there is room in a still-fragmented global auto industry to create a company that would be bigger than industry leader Toyota Motor Corp.

Krafcik's assessment is based on a review of the model lineups of the two companies and their complementary market strengths. Whether the two companies are interested in merging wasn't part of his analysis.