- 23 Jul 09, 16:03#135471
Not a surprise considering the amount of links and collaboration between the two car manufacturers.
However it further cements VW's growing dominance, not just in Europe but in and around the world. They set targets to be the biggest car company by 2018, and it looks like it could happen.
VW proposes takeover of Porsche
Europe's biggest carmaker, Volkswagen(VW), plans to buy German sports car firm Porsche in stages while retaining the latter's independence.
VW says its board will hold talks with Porsche "in order to reach a final concept fulfilling this goal".
Both sides had earlier said they wanted to form an integrated automotive group.
The latest move comes after Porsche's chief executive Wendelin Wiedeking and financial director Holger Haerter had resigned "with immediate effect".
Mr Wiedeking had failed in his attempt to take over VW, despite Porsche building a 51% holding in the company.
'Progressive acquisition'
“ Volkswagen and Porsche have excellent know-how at their disposal and can use their resources even more efficiently by combining them ”
Martin Winterkorn, chairman Volkswagen management board
VW says that the new company will be achieved by the "gradual involvement of Volkswagen in Porsche AG" - Porsche's carmaking unit.
"The integrated group should emerge from the progressive acquisition by Volkswagen of a participation in Porsche SA and the complete mergers of [parent firm] Porsche SE and Volkswagen AG," a VW statement said.
The integrated group would come under the leadership of VW.
'Growth opportunities'
Martin Winterkorn, chairman of the Volkswagen management board said "it makes two strong companies even stronger".
"Volkswagen and Porsche have excellent know-how at their disposal and can use their resources even more efficiently by combining them," he added.
"For this reason, we expect additional growth opportunities, safeguarding existing jobs and creating new ones," he added.
"At the same time, we can call on our considerable experience in the integration of proud and successful brands rich in tradition. Like Audi today, Porsche can also continue its independent development under the aegis of Volkswagen and preserve its own identity."
Earlier on Thursday, Porsche had said it would increase its capital by at least 5bn euros ($7.10bn; £4.3bn).
It said that this new sum would "create the foundation of building an integrated car manufacturing group with Porsche and Volkswagen".
Porsche's board also endorsed negotiations for the sale of a stake to Qatar to bolster its balance sheet.
The carmaker would not say if the 5bn euros capital increase would come from Qatar.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/b ... 165524.stm
Published: 2009/07/23 15:35:18 GMT
Not a surprise considering the amount of links and collaboration between the two car manufacturers.
However it further cements VW's growing dominance, not just in Europe but in and around the world. They set targets to be the biggest car company by 2018, and it looks like it could happen.
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