Volkswagen says it has indefinitely halted talks over its merger with Porsche, saying the sports car manufacturer is not prepared for a partnership. Porsche went into significant debt earlier this year acquiring a majority share in Volkswagen.
Volkswagen says that Porsche, which wants to align the two automakers together under one umbrella, lacked a sufficient strategy for the potential integration.
“We recognized at the end of the week that Porsche is lacking several fundamental conditions for the discussions,” a VW spokesman said on Sunday.
The automakers had planned to meet today to discuss the merger, but the meeting has been canceled. Porsche says that the talks will continue, but Volkswagen says it is holding off.
The Porsche-VW tie-up is a family affair; Porsche’s supervisory board is mostly made up of Porsche family members and VW Chairman Ferdinand Piech is a grandson of Porsche founder Ferdinand Porsche. Yet Piech says that Porsche, the automaker, must reduce its 9 billion euro debt (about $12.3 billion) before it seriously considers an integration with VW. Porsche incurred the debt when it scrambled to pick up a controlling share in VW late last year.
05/18, 9:18 AM
posted by:
idrinorbarsaku
WOW!! I wasn’t expecting a swift kick to the nuts to Porsche by VW!!!!
05/18, 10:00 AM
posted by:
HoosierHero
The people have spoken! Good for VW not to let Porsche push them around, especially when they are so much in debt! That’s a lot of Porsches…
05/18, 10:11 AM
posted by:
05Z88Path
Family feud!
05/18, 10:47 AM
posted by:
California GT
A family that fights together stays together ….OK
05/18, 11:38 AM
posted by:
Dante_JoseCuervo
YAY! As much as I like both companies, I prefer they stay separate.
05/18, 11:57 AM
posted by:
JakeK66
I’m sure it has alot to do with how they are integrating the Audi brand, due to the internal competition of the automakers.
That being said, VW is the brainchild of Adolf Hitler, which has nothing to do with this, but interesting.
05/18, 12:25 PM
posted by:
Borat
Jake, as long as we on history subject, VW was brainchild of Fuhrer but it executed by Porsche founding father.
05/18, 1:29 PM
posted by:
A4
RIGHT TO THE STUGATS PORSCHE, YOU SUCK
05/18, 7:43 PM
posted by:
Pazzo Canguri
LMAOF @ A4…stugats…ehehehehe…
Im glad vw did that, porsche are starting to over step the mark, me thinks…
Leave them seperate…..vw make a great job of lambo, so leave em be porsche…..pay your bills and shut the f up…heheh
05/18, 9:13 PM
posted by:
snoogah
i drive an 09 jetta and the brakes actually work really well so im not surprised
05/18, 9:58 PM
posted by:
Madcapp
Well, maybe there will be a Bluesport roadster after all. I’m glad to see that there is a contingent of people at VW that has the nuts to stand up to Porsche.
05/19, 1:35 AM
posted by:
winnipegjets
with the high profit margins at porsche, theyll pay off that debt in no time at all
05/19, 11:11 PM
posted by:
Rafa LL
+1