Fiat Tries To Conquest VW Sales With $1,000 Rebate

You’ve got to love corporate rivalry. In some ways, spirited competition can be a good thing. General Motors and Ford have had a long-standing rivalry. It seems to have died down a bit, but it is still there underneath the surface. Usually issues like this emerge when these companies have large personalities as their leaders.

For instance, Fiat, with Chief Executive Officer Sergio Marchionne, and Volkswagen, with its Chairman Ferdinand Piech. VW is on a relentless drive to become the world’s largest automaker. It reminds us very much of General Motors in its heyday, particularly in regards to the way the corporate structure is set up. Much to Marchionne’s consternation, Piech has publicly voiced his desire to purchase Alfa Romeo.

This request has been denied over and over and is something of a sticking point between them. Tensions really escalated though back in October, after Volkswagen announced its desire to see Marchionne resign from the presidency of the European Automotive Manufacturers Association (ACEA). This ignited a firestorm between the two. Marchionne has since claimed that Volkswagen is trying to push out competitors by pricing its products too low.

The result has been a gain in Volkswagen market share, even as the overall European market has shrunk. Most think this strategy is aimed at causing competitors (such as Fiat) to go bankrupt. The rest of the voting members of the ACEA obviously feel different than Volkswagen however, as last week Marchionne was elected to a second term as president. While the European situation is difficult for Fiat, in the United States the Fiat-Chrysler partnership means things are reversed. Bloomberg reports that Chrysler and Fiat are offering a $1000 rebate for buyers who switch from Volkswagen. This is a strong incentive aimed at eroding some customer loyalty. It will be interesting to see how Volkswagen responds. We can’t imagine they would let this go unanswered.

About The Author

Tony Pimpo is a young automotive journalist who lives in Northern California. He believes the future of the automotive industry will depend in a large part on the recommendation of enthusiasts and Generation Y. More than ever, automakers lately have realized the power of Gen Y. Not only in regards to buying power, but in driving opinion and spreading a brand’s message through the internet and various forms of social media. His appreciation for cars formed at an early age, thanks to his dad, who has always been involved with cars in different ways over the years. Tony has contributed to various websites in his pursuits, and is on staff at GMInsideNews, where he has been writing since the age of 12.

1 Comment on "Fiat Tries To Conquest VW Sales With $1,000 Rebate"

  1. Alessio Sa

    volkswagens have many troubles, specially the timing chain of the new tfsi engine The engine self destruct itself just when warranty void.

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