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.
01/30, 11:25 AM
posted by:
LexusSoarer
You know what, for some reason I just knew this deal wasn’t going to end up going through. Can’t explain it…
01/30, 11:53 AM
posted by:
johnnycanuck
I wonder if Porsche would ever consider bringing back an entry level car such as the old 914 again?
01/30, 12:07 PM
posted by:
corvette
A Porsche takeover wouldn’t be bad they already control 31%.
01/30, 2:07 PM
posted by:
SwerveEarly
VW Law, does that state they cant build a masculine product.
01/30, 3:11 PM
posted by:
Ironhide
A Porsche takeover would be good. VW would be unstoppable in giving may people high quality autos
01/30, 3:24 PM
posted by:
angelo
Time to get that premier caught in a corruption scandal and place a Porscheophile in charge.
FYI, VW Law prohibits any company from owning more than 30% of VW.
01/30, 3:30 PM
posted by:
jayjc08
Interesting that such a small company could take over such a huge company like VW, isn’t it? This really amazed me, especially considering the head profits of each Porsche they sell.
01/30, 4:11 PM
posted by:
1c3d0g
Thank Jesus. The last thing we need is an overpriced, underperforming VW.
01/30, 4:44 PM
posted by:
stick2clutch
Angelo, Correction. Porsche already owns over 30%. You can even own over 50 percent. Porsche has that option right now. The only problem is you cannot exercise more than 20 percent of the voting rights.
01/31, 4:36 PM
posted by:
TOZO
(belch)