Marchionne Backpedals on FCA-VW Merger Quest

Fiat Chrysler Automobiles NV is “not in a position” to discuss a merger with Volkswagen AG and instead will focus on its own business plan, CEO Sergio Marchionne tells investors.

“We need to be very careful that we don’t start unrealistic dreams about consolidation,” Marchionne adds.

Last month Marchionne, who believes further consolidation within the auto industry is inevitable, floated the notion of a tie-up between the companies. He opined that VW might favor the move to offset PSA Group’s purchase of General Motors’ Opel unit in Europe.

An initially skeptical VW CEO Matthias Mueller later indicated tentative interest in discussing the idea. But Marchionne, who is expected to retire in early 2019, says there are no ongoing discussions between the companies.