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Interested, then not: Marchionne not 'chasing' a VW merger

Update (March 15, 2017) : Automotive News reports that FCA CEO Sergio Marchionne, regarding the suggested VW and FCA merger, said in a press conference "I have no interest." He also said that he "will not call Matthias," the CEO of VW. He did add that he would be willing to entertain anything VW brings up, but he has "no intention of chasing him." Despite this, Marchionne still took a moment to reinforce his favorable stance concerning mergers and consolidation. Last week, Volkswagen's CEO Matthias Mueller effectively shut down Fiat Chrysler CEO Sergio Marchionne's idea of the two automakers merging. However, it seems Mueller has softened, if only just, to the idea. According to Reuters, the CEO said in a press conference he is "not ruling out a conversation." However, he did say that he would like Marchionne to discuss with him directly the possibility rather than to the media. Though this statement certainly doesn't mean such a merger is happening, it's far more open than when he said outright the company isn't in any talks with anyone at the moment. His new stance also indicates that there may be people (lawyers, accountants, etc.) behind the scenes working out possible ways a merger could work. And even though this new development makes the prospect of a merger between the two companies a bit less bleak, it's still a long way from the "will they, won't they" relationship between GM and FCA. FCA's pursuit of GM involved emailing CEO Mary Barra and the threats of a hostile takeover, the latter of which resulted in some awkward statements about hugs. Only time will tell if VW becomes open enough for Marchionne to talk about hugs again. Related Video:

Volkswagen poised to enter F1 with Red Bull

The Volkswagen Group could finally be preparing to enter Formula One, and enter it in a big way. That is, at least, if the latest reports prove accurate. And given the source, we're taking notice. The word around the paddock this weekend in Singapore has it that VW is entering into a partnership with Red Bull Racing that would see the German auto giant not only supply the team with engines, but buy the team altogether. The move would come as a welcome development for Red Bull, which took four consecutive world championships between 2010 and 2013, but has fallen off pace over the past couple of seasons due in large part to the under-performance of its Renault engines. The deal, which according to the report is currently being finalized, would see VW develop an all-new engine for Red Bull (and potentially for Toro Rosso and other customer teams), but the new power unit wouldn't be ready before 2018. In the interim, Red Bull would break off its current deal with Renault a year early and switch to another customer engine arrangement, with Ferrari currently rumored to be the favorite. The energy drink company that currently owns the team, in turn, would revert to a (prominent) sponsorship role - similar, it bears noting, to the role it plays with VW's World Rally Championship team. The termination of the relationship with Red Bull could spell the end of Renault's current F1 program, unless the French manufacturer carries through with plans to reacquire its stake in the Lotus team that was once its own. The VW deal would also ostensibly put to rest the mooted arrangement that would have seen Red Bull switch from Infiniti sponsorship and Renault engines to a similar deal with Aston Martin and Mercedes. What isn't clear at this moment is which brand Volkswagen would choose to promote with the new F1 program. Audi is speculated to be the favorite, which would likely spell the end of its Le Mans prototype endurance racing program – leaving that realm to Porsche after a solid decade and a half of dominance. The board in Stuttgart could, however, opt to hand the opportunity to one of its other brands, including Bugatti, Bentley, Lamborghini, Seat, Skoda, or the Volkswagen brand itself. The news comes from not only from the BBC, but from its analyst Eddie Jordan – a man who knows a thing or two about running an F1 team... and selling one. Jordan ran his eponymous grand prix team from 1991 through 2005.

Red Bull says VW deal in F1 now 'up in smoke'

The Volkswagen diesel scandal will likely have long-term repercussions, reverberating across the industry potentially for years to come – the likes of which we're only beginning to discover. And that could include Formula One. Now if you're thinking that VW doesn't compete in F1, you're right. Even between all of its various brands, the group has little history in post-war grand prix racing. But if was getting close. As we reported last week, the German auto giant and the Red Bull Racing team were nearing an agreement that would (or would have) seen the former take over the latter. The deal was said to include VW developing a new power unit (as the combined turbo engine and electric motor are referred to in the sport) and acquiring the multiple championship-winning team, with the energy drink company that now owns it transitioning back to a more traditional sponsorship role. It remained to be seen, though, just which of its many brands VW would choose to promote through the new program. Team principal Christian Horner, however, now says that the deal has "seemed to go up in smoke." That doesn't mean that it's off the table entirely and indefinitely, but it would follow logically that between the scandal it's currently facing, the ensuing change in leadership, and drop in stock value, the board in Wolfsburg has other problems to focus on and devote its resources. While ostensibly a logical move for Volkswagen, that would leave Red Bull in a difficult position. The Renault partnership that once led to utter domination with four back-to-back world championships has since fallen dramatically off pace. Although it impressively held on last season to come second in the championship with three race wins, it hasn't won a race yet this season – and heading into this weekend's Japanese Grand Prix, stood fourth in the standings... its worst position since 2008. "With the way the regulations are, unless you have a Mercedes or Ferrari power unit it is quite simply impossible to compete," said Horner. "And if we are not able to compete, then you have to question what is the validity of remaining in F1." If the Volkswagen deal does indeed fall through, the team will likely need to buy its power units from another supplier – with its chief rivals as the only likely candidates. Related Video: