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Volkswagen is not cool with a Fiat Chrysler merger

Volkswagen CEO Matthias Mueller shot down Fiat Chrysler CEO Sergio Marchionne's overtures for a merger in blunt fashion this week. Mueller told Reuters at the Geneva Motor Show, "We are not ready for talks about anything ... we have other problems. I haven't seen Marchionne for months." The unusually candid – and icy – response from one chief executive to another comes after Marchionne similarly pursued General Motors (again) this week. The FCA boss suggested GM might be looking for a new European partner as it prepares to unload its troubled Opel and Vauxhall divisions to PSA. A GM spokesman told USA Today that the company is not interested. Marchionne has been openly suggesting a GM merger since at least 2015, despite GM never reciprocating interest. VW's "other problems," as Mueller notes, include legal proceedings, fines, recalls, and other issues related to its long-running diesel scandal. Marchionne has long sought industry consolidation, arguing that automakers don't get a proper return on their investments in technologies, some of which are relatively similar. He's suggested sharing chassis and powertrain components could be a benefit to the collective auto sector. Skeptics argue FCA, which is smaller than GM, VW, Toyota, and others, needs a partner to survive, while its rivals already have the necessary scale to remain competitive. Related Video:

Former Porsche execs acquitted of stock manipulation charges

A German court acquitted former Porsche CEO Wendelin Wiedeking and former CFO Holger Harter of stock manipulation charges, according to Bloomberg. Prosecutors alleged the men hid plans to takeover Volkswagen while publicly denying their intentions to investors. The presiding judge didn't find any merit to those claims, though. "There is nothing to the allegations, absolutely nothing," Judge Frank Maurer said, according to Bloomberg. "There was no secret plan to take over VW." Rather than Porsche taking over VW, the exact opposite eventually happened, and both execs stepped down. Investigators first indicted Wiedeking and Harter for alleged stock manipulation in late 2012. A court in Stuttgart dismissed the case in 2014 because of a lack of evidence, but an appeals court later overruled that decision. The current trial finally began in October 2015. If convicted, Wiedeking faced up to 30 months in prison, and Harter could have received up to 27 months, Bloomberg reported. Prosecutors also wanted one million euro ($1.1 million) fines from them and 807 million euros ($910 million) from Porsche. The acquittal might not be the end of this long-running case, though. In Germany, prosecutors have the right to appeal a ruling, and the lawyer hasn't made a final decision yet. If the court thinks there's a reason, the former execs could be back in front of a judge at some point in the future.

Giorgetto Giugiaro launching new design firm

Giorgetto Giugiaro may have sold his remaining shares in the Italdesign firm he started, but he's not about to retire from the business altogether. According to an interview with Automotive News Europe, he's starting a new design consultancy. And he's taking his son, Fabrizio, with him. After working for established design houses Bertone and Ghia, the celebrated designer founded Italdesign Giugiaro in 1968. In 2010 he and his son Fabrizio sold 90.1 percent of the firm to the Volkswagen Group, with Fabrizio initially carrying on as its chief designer before Wolfgang Egger replaced him. Just months ago, the Giugiaros sold their remaining stake and resigned their seats on the board of Italdesign. The move came hot on the heels of the departure of ousted board chairman Ferdinand Piech, a longtime friend of Giorgetto's and the driving force behind VW's acquisition of Italdesign. Just because they're no longer affiliated with Italdesign Giugiaro doesn't mean, however, that the Giugiaros won't be designing cars anymore. They're reportedly working on establishing a new design house, and are discussing potential contracts with unnamed Chinese and South Korean automakers. The father-son pair could set up shop in a refurbished existing location (as the pragmatic Fabrizio favors) or build a new studio from the ground up (as the visionary father prefers). We'll have to hold on to see what direction the new firm takes, but most of all, we'll be looking forward to seeing what designs it produces. News Source: Automotive News Europe - sub. req.Image Credit: Volkswagen Design/Style Hirings/Firings/Layoffs Volkswagen italdesign giugiaro Giorgetto Giugiaro