My own personal opinion is that with the lack of cash for investment FCAs models will fall far behind - so they need a partner or a merger to compete. VW may save a few badges but in my experience their mass produced models all drive identically - they are not great at engineering brand identity into their cars. An Audi just feels like a VW with a nicer interior. Their styling chief, Da Silva is too conservative and unadventurous since leaving Alfa - with each year the designs are becoming too 'samey' - maybe Ital design will help with this, I don't know. Fiat, as a brand, might be annexed - but it needs a stronger identity for a mammoth concern like VW to keep it going.
When Piech was in charge he had a dream of recreating Auto Union. But he's gone now so, I agree, if they are chasing Toyota levels of profit and efficiency I can't see how taking on FCA would be a good idea. They are bloated as it is!
