VW Diesel Scandal Bolsters Marchionne‘s Campaign for Mergers

Regulators in the U.S. and around the world are set to tighten scrutiny after VW admitted to rigging diesel engines for years to circumvent pollution tests in the U.S. That could raise the costs needed to develop cleaner technology. As it is, the strain of meeting guidelines and making a profit was evidently already enough to prompt Volkswagen to cheat.

„Inevitably, VW‘s issue creates the conditions for a reshuffle of assets that may lead to mergers among carmakers once the dust of the scandal is settled,“ said Emanuele Vizzini, who helps manage 3.6 billion euros ($4 billion) as chief investment officer at Investitori Sgr in Milan, including FCA shares. „We expect Fiat to be an active player helped by the positive momentum of its business.“