Volkswagen Interested in Acquiring Ferrari

Volkswagen chairman, Ferdinand Piech, wants to add the Italian supercar manufacturer Ferrari to the list of brands owned by the German corporation, according to reports from the local press. It's no longer a secret that Piech wants to incorporate Fiat's Alfa Romeo brand into the Volkswagen Group, but the real object of Piech's desire is Ferrari.

The German auto giant has accumulated a large amount of cash – US $27 billion (about GBP 16 billion, EUR 19 billion), to be precise – which is enough to cover the estimated value of Ferrari, currently standing between US $3.17 billion and US $4.83 billion (GBP 1.96 to 2.99 billion, EUR 2.3 to 3.51 billion).

The issue is whether Volkswagen has the capacity to add another high-end sports car brand to its portfolio. You may recall that the Volkswagen Group already includes Lamborghini, Porsche and Bugatti.

Fiat is eager to raise funds to help it increase its stake in Chrysler and fund new product development, but its CEO, Sergio Marchionne, has previously denied that Ferrari is up for sale. However, there are rumors that Fiat might sell shares in Ferrari in an initial public offering while retaining a majority stake.

For now the situation remains unclear, as each of the companies' CEOs have dismissed the rumors surrounding the subject, describing their intentions (or lack thereof) as being "only a dream". All we know is we wouldn't want see the prancing horse turn into a nag.

Unfortunately this all sounds a bit familiar. Volkswagen seems to be trying to incorporate more and more brands, having the potential to eventually lead to the formation of the next General Motors.