Volkswagen leaves door open to Fiat talks as VW brand struggles

Volkswagen left the door open to potential tie-up talks with Fiat Chrysler Tuesday, as a drop in operating profit at its biggest car brand showed the challenges it still faces 18 months on from its emissions scandal.

Fiat Chrysler boss Sergio Marchionne said last week that the deal might eventually persuade VW to seek a tie-up with his own company, a suggestion that was swiftly rejected by VW. .

Fiat Chrysler shares rose more than 2 percent following the comments, while VW’s were little changed.

Breaking down the figures for the first time, the company said Tuesday underlying operating profit at its VW brand fell 10 percent to 1.9 billion euros ($2 billion), with the profit margin slipping to 1.8 percent from 2 percent in 2015 .

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