Porsche has been planning to take control of Volkswagen for several months now, with the sports car maker finally making its move on Wednesday. Porsche announced its integration with Volkswagen earlier today, creating a single entity with 10 underlying brands.
Porsche’s move to takeover VW has stalled in the recent months, but recent meetings between both sides spurred the decision. “In the final structure, 10 brands shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured,” a statement said. Volkswagen currently controls 9 brands, with the Porsche-family owned Porsche representing the 10th.
Despite the news, Porsche has indefinitely postponed its plan to take a 75 percent stake in VW. Porsche cites worsening economic conditions for the decision, with industry experts estimating the German automaker would need to raise an additional 13 billion euros to top the 75 percent mark. According to Automotive News, Porsche currently owns a 51 percent stake of VW.
Details will be hammered out in the next four weeks as Porsche officials meet with the German state of Lower Saxony – one of VW’s largest stakeholders.
