Volkswagen and DaimlerChrysler to Build Joint Venture Minivan?

Volkswagen currently produces a minivan in Europe, the Touran, whichcould find a niche in North America due to its smaller sizeand resultantly low fuel consumption. (Photo: Volkswagen Canada)

The obvious benefit to Volkswagen would be aligning with a manufacturer that has a proven record of minivan success under its belt, and now with its Stow 'n Go seating system, the most flexible interior in the industry.

The newspaper stated that Zetsche and Bernhard could sign a cooperative agreement to "seal the deal" at the IAA motor show in Frankfurt next month. Volkswagen declined to comment on the report, but two sources familiar with the scheme told the Reuters news service "it had been in the works for some time."

A deal to build a VW minivan has been "approved in principle" by the board of management and supervisory board at DaimlerChrysler's Stuttgart headquarters. (Photo: Volkswagen Canada)

The two sources made it clear that while the deal hasn't been finalized, it has been "approved in principle" by the board of management and supervisory board at DaimlerChrysler's Stuttgart headquarters.

Also unclear, is where the new minivan would be built. Currently Chrysler Group builds its vans in St. Louis, Missouri and Windsor, Ontario, in North America, and Austria in Europe. Chrysler Group vans will also soon be produced in Taiwan.

In the end, if and when Volkswagen enters a minivan into the North American market, even if co-developed with Chrysler Group, the automaker needs to remain realistic about how quickly it can ramp up sales to compete with the market leaders. Volkswagen has been misguided before, particularly in believing that its Phaeton luxury sedan would sell greater volumes than it is currently experiencing (hopelessly low), and it would be unreasonable for the brand's executive team to believe it could enter an all-new market segment and somehow, miraculously become a dangerous threat to Dodge and Chrysler's Caravan and Town & Coutry, respectively, Honda's Odyssey, Toyota's Sienna, GM's Uplander/Montana SV6/Relay/Terraza quadruplets, Mazda's MPV and others. 

Given enough time, however, and VW could build a strong minivan following, especially if the vehicle featured an optional TDI turbodiesel engine.

Now, only time will tell if the DCX-VW joint venture will come to fruition, and then if so, bear fruit worthy of taking on all rival makes.