Volkswagen warms to merger with Fiat Chrysler

Volkswagen Group's chief executive, Matthias Mueller, has announced that he would not rule out a potential merger with Fiat Chrysler Automobiles (FCA).

Speaking at the Volkswagen annual press conference this week, Muller declared he wouldn't rule out entering negotiations with Sergio Marchionne but confirmed that there had been "no contact" between him and FCA boss.

Marchionne has long been on a crusade for more mergers and greater partnership within the car industry to share the huge cost of development of cleaner, more technologically advanced vehicles. That is despite being repeatedly rebuffed by General Motors.

Asked if a VW-FCA deal could be done, the Volkswagen boss said: "I am not ruling out a conversation", but added: "It would be very helpful if Mr Marchionne were to communicate his considerations to me too and not just to you", Mueller told journalists.

Volkswagen is already the world's largest auto-maker and a potential alliance with the Italian-American brand would help it dwarf its rivals for size. That said, Mueller remains bullish the Volkswagen Group will survive, with or without a potential merger, even post the billion dollar fallout from it emissions crisis.

"I am pretty confident about the future of Volkswagen, with or without Marchionne," Mueller said.

During the press conference the German CEO said that more than four million vehicles worldwide had been modified to remove their 'defeat device' and that, currently, more than 200,000 vehicles a week are being fixed.

In the future, the VW empire will become increasingly international, more entrepreneurial and have a higher number of women in management, Mueller announced.

In terms of product, the car maker will remain committed to introducing pure-electric vehicles -- despite slow global sales.