Automotive Giants Deny Merger and Partnership Rumors

Strategic Insights -

Industry leaders BMW and Fiat have strongly rejected reports of a possible alliance or merger between the two companies. Fiat's officials claim they have not had discussions with BMW since the 1980s, while BMW's spokesperson dismisses the rumors as "complete rubbish." Meanwhile, Volkswagen has not ruled out partnerships but has distanced itself from Volvo, stating that it has no plans to team up with the Swedish truck maker. The development follows speculation surrounding a tie-up between Volkswagen and Volvo, as well as Volkswagen's decision to supply its own engines to Rolls-Royce after the contract with BMW expires.

Key Takeaways:

  • Fiat has denied reports of talks with BMW, claiming they have not had discussions since the 1980s.
  • A Fiat spokesman stated that the company does not need a partner and is pursuing a strategy of globalization.
  • BMW's spokesperson, Mr. Jurg Dinner, described the rumors as "complete rubbish."
  • Volkswagen has not ruled out partnerships but has distanced itself from Volvo, stating that there is "nothing in the pipeline."
  • Volkswagen will supply its own engines to Rolls-Royce after the contract with BMW expires.
  • Volkswagen has the option to use engines built by Cosworth, acquired by their Audi subsidiary, for Rolls and Bentley saloons.

Statistics:

  • Fiat has not had discussions with BMW since the 1980s (no specific time period mentioned).
  • Volkswagen's engines will replace those from BMW's contract with Rolls-Royce.
  • Cosworth, acquired by Volkswagen's Audi subsidiary, will potentially supply engines to Rolls and Bentley saloons.

Sources:

  • Fiat spokesman (no reference provided)
  • BMW spokesperson, Mr. Jurg Dinner (no reference provided)
  • Volkswagen spokesman (no reference provided)
  • Report on Volkswagen's acquisition of Cosworth ( Wall Street Journal, 1998-04-10: "Addition by Subtraction, Volkswagen Strengthens Its Bosch-Fuelled Hire Gun")