Last month, rumors emerged that Volkswagen was considering a takeover of Fiat. Both companies denied the rumors but Autocar is reporting Volkswagen was legitimately interested in the company.
According to their sources, Volkswagen strategists came up with the plan earlier this year and it would have involved buying a controlling interest in Fiat Chrysler Automobiles. When this happened, the Volkswagen Group would have revived the Auto Union moniker.
However, sources say the plan didn't get very far as profit margins are falling and the takeover would have required a large investment. The falling profits have reportedly forced Volkswagen to consider drastic cost cutting moves which could see slow selling models - like the Scirocco and Up! / Skoda Citigo / Seat Mii - being dropped.