Fiat CEO says tie-up with Volkswagen was never on agenda

Wed Jul 23, 2014 7:38am EDT
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TURIN Italy (Reuters) - Fiat Chrysler FIA.MI CEO Sergio Marchionne on Wednesday quashed speculation of a possible tie-up with Germany's Volkswagen (VOWG_p.DE: Quote), saying the idea had never been on the agenda.

A German magazine earlier this month reported Volkswagen Chairman Ferdinand Piech had held talks with the owners of Fiat Chrysler about buying all or part of the group.

John Elkann, the head of holding group Exor (EXOR.MI: Quote) which controls Fiat Chrysler via a 30 percent stake, said at the same event as Marchionne that there was nothing else to add on the matter.

Fiat and Exor had already denied the German report, while Volkswagen said it had no takeover plans.

Marchionne said he still expected to list the merged Fiat Chrysler Automobiles in the United States in the first two weeks of October. Fiat shareholders will vote on the merger next week.

He also said second-quarter results, which will be released next week, were in line with expectations, adding he did not expect to report losses for the April-June period.

In the first quarter, the company reported a net loss, hit by one-off charges linked to the deal to buy out in full its U.S. unit Chrysler and by currency fluctuations.

"I don't think there are losses, but we will see," Marchionne told journalists on the sidelines of an event in Turin.

The company said late on Tuesday it had signed a deal with Renault (RENA.PA: Quote) for the French group to supply Fiat with a light commercial vehicle based on a Renault platform.   Continued...

A new Fiat Chrysler Automobiles sign is pictured after being unveiled at Chrysler Group World Headquarters in Auburn Hills, Michigan May 6, 2014.  REUTERS/Rebecca Cook