Despite a ruling by the European Court of Justice last November, Porsche may still not be permitted to take a majority share in Volkswagen . The court ruled that Germany could not block the sale of VW because of what is dubbed as “VW Law”, but Germany has drafted new legislation that would offer VW the same protection as under the old law.
The new legislation has yet to be enacted — it still must pass parliament — but if it does become law, the German state of Lower Saxony would still be able to veto any major changes at VW.
Because of VW’s uncertain future, Porsche will not increase its 31% stake in the German automaker in the immediate future. Porsche is interested in purchasing VW to lower its overall CO2 emissions in the face of stricter regulations.
But Porsche might have to start searching for a Plan B. Christian Wulff, Lower Saxony’s state premier, has stated that his state will keep its stake in VW as long as he is premier.
