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Porsche Automobil Holding SE will abandon its plans to take over Volkswagen AG, as it now prefers a potential merger of the two firms. The move comes after a day of discussions among the families that control Porsche. The families originally gathered to figure out a way to cut Porsche’s €9 billion ($12 billion) debt and fund the takeover of VW. The deal represents a setback for Porsche, which intended to dominate VW by expanding its 51 percent stake to a 75 percent stake.
Few details are known about the merger, although the two companies said they had agreed on a blueprint to make an “integrated car manufacturing group” within four weeks. According to Porsche, “10 brands shall stand below an integrative leading company.”
Currently VW and Porsche are run independently. VW is in charge of Volkswagen, Lamborghini, Skoda, Bentley, Bugatti, Audi, Scania, Seat and Volkswagen Commercial Vehicles, while Porsche runs its sports car brand on its own.
Porsche said that it aims to “develop a corresponding basis for decision-making on the future structure of the common group.” Volkswagen is said to have welcomed the move.
Source: Automotive News
Haha, nice one KaBoomBox.
Porsche and Volkswagen(+Audi). The High School relationship of the automotive world (they’re together, they break up, they get back together, one tries to take over the other, etc…).