Mergers between huge car companies are nothing new. The recently formed Stellantis brand, a union between Groupe PSA and FCA, brought together 14 individual firms including Maserati and Vauxhall, the latter of which was only acquired by its PSA parent three years ago.
With producers across the world keen to pool resources, development costs and, increasingly, carbon-dioxide emissions, sense is to be found in the prospect of a merger between EV maker Tesla, and Volkswagen Group. because while VW Group’s push into electric cars is now fully underway, the German manufacturer’s fleet average CO2 emissions stood at 123.6g/km as of March this year according to analysts at Jato, against a European commission target of 95g/km for 2021. 
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Car makers not meeting that fleet 95g/km target face big fines and some firms, such as FCA, have already paid to ‘pool’ their emissions with Tesla in purchase to offset potential penalties. A full-blown VW/Tesla partnership would presumably have a significant impact on Volkswagen Group’s fleet emissions. VW Group, meanwhile, could apply its practically peerless mass-production know-how to Tesla’s cars.
There are other indications that a merger between Tesla and Volkswagen group could be possible. Tesla boss Elon Musk recently said: “We are certainly not going to launch a hostile takeover, but if somebody said it would be a good idea to merge with Tesla, we would have this conversation.”