In Europe, Volkswagen and Chrysler majority stakeholder Fiat are the two big rivals who have been trading more and more verbal attacks in recent months. Fiat accused VW of tanking the European car market by over discounting its cars while VW submitted an unsolicited offer to buy Alfa Romeo which Fiat/Chrysler CEO Sergio Marchionne took to be offensive.

Now Sergio Marchionne has the Chrysler group offering $1,000 cash back to any buyers who own a VW. The move has dealers in the US stumped, as there is very little cross shopping between Chrysler's brands and VW, but they are hoping that it will boost sales of the new Dodge Dart. Obviously, actually getting people in the showrooms isn't what this is about. 

VW has now responded by asking Marchionne to resign as head of the European Automobile Manufacturers' Association.

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[via Wall Street Journal]