Following weeks of negotiations, Volkswagen has agreed to purchase a 42 percent stake in Porsche, totaling a $4.7 billion investment. The move will combine the two German automakers, likely under the revived Auto Union banner.
According to Automotive News, VW will complete its $4.7 billion investment in Porsche by the end of the year, with the two companies expected to be fully integrated by the end of 2011. Volkswagen’s current CEO, Martin Winterkorn, will act as the new head of Porsche and will likely oversee the combined company.
Porsche’s failed takeover of VW earlier this year set the stage for the merge. Porsche fought over the last several months to takeover VW – Europe’s largest automaker – but would up with a mountain of debt totaling $12 billion. After the failed takeover, Porsche fired CEO Wendelin Wiedeking.
VW will finance the merger with a preferred share offering early next year. Despite the takeover, the Porsche and Piech families will remain the largest stakeholders in the new company.
08/13, 5:11 PM
posted by:
A4
Porsche is such a fvcking fail.
08/13, 5:15 PM
posted by:
Borat
This is not interesting news. The news is how you cleaned the keyboard or new laptop in order?
08/13, 5:19 PM
posted by:
A4
clorox wipes and armorall
08/13, 5:35 PM
posted by:
JakeK66
The better company wins out yet again. Man, I’m really starting to like the Germans. This is exactly how the Anheiser Busch takeover should have gone, with A-B buying out InBev, but alas – Americans didn’t have the wherethal the Deutsch did.
08/13, 5:47 PM
posted by:
A4
InBev is Belgian…
08/13, 5:52 PM
posted by:
JakeK66
The Anheiser people didn’t have the wherethal of the Volkswagen people is how I was meaning for it to say, but I understand the confusion.
08/13, 5:54 PM
posted by:
johnnycanuck
Auto Union, that’s a laugh. If this is a union then Porsche is the one who just dropped the soap.
08/13, 6:03 PM
posted by:
KarLoveBoy88
I couldn’t imagine Porsche running any other company. Could you imagine a redesigned Routan with a Porsche designed front end? Priceless.
08/13, 6:06 PM
posted by:
A4
…so in other words a redesigned Grand Caravan with a Porsche front end?
yeah i got that now JakeK my bad.
08/13, 6:47 PM
posted by:
SomeGreek
One happy family again… And always wealthy, of corse!
08/13, 6:51 PM
posted by:
reedfast
OMG Porsche minivan is on the way!
08/13, 7:27 PM
posted by:
mayer_ray_nagin
Does this make VW the biggest in the world? It’s gotta put them a bit closer.
08/13, 7:35 PM
posted by:
atoms
HA! I would be surprised if porsche did not see this coming after their attempt
08/13, 8:16 PM
posted by:
A4
porsche only puts out about 60,000-70,000 cars a year mayer… thats chump change in the race for the top.
08/13, 8:17 PM
posted by:
TL
Hmm…A VW minivan with a Porsche sourced engine…
08/13, 8:46 PM
posted by:
04focus
wait, so how does this work? VW will own 42% of a company that owns 51% of VW?
08/13, 8:52 PM
posted by:
carmaster4ever
Mayer
i heard VW group has like 10 auto companies under there name… the only ones i can think of is Seat, Skoda, Porsche, Lamborghini, Audi, Bentley, Bugatti
08/13, 10:26 PM
posted by:
Veda
The only reason why Porsche didn’t succeed in their grand plan was because of the global crisis. They just needed to do one final move to complete the plan. Alas, good fortune wasn’t on their side, so instead of being the predator, they got eaten. Either way, they should’ve merged a long time ago. Porsche’s assessment that they won’t survive alone without a big brother is correct.
08/13, 11:37 PM
posted by:
cocojoe53
Veda is right..It was a huge gamble that did not pay off for Porsche….And it will end up just like the relationship between Ferrari and Fiat
08/14, 6:01 AM
posted by:
fan
i cant but feel like this was how it was planned behind the scenes all the time… VW and Porsche merging would never have been approved by the european union, but now, that porsche is “in the red” (yeah, as if…), VW is the white knight and rescues poor porsche… and they dont even need government money… now, isnt that sweet…
08/14, 7:31 AM
posted by:
scratchy
carmaster4ever , add to those Scania trucks, VW cars, VW commercial vehicles and Porsche.
08/14, 11:40 AM
posted by:
hummah
Maybe they can start building Porches in Mexico alongside VW’s for the American market, then those can be pieces of junk too.
08/14, 12:03 PM
posted by:
DenverGuy217
I wish VW would just build that cool microbus that they showed 3-4 years ago…
08/14, 12:10 PM
posted by:
The Stig
Doubt this is the outcome Porsche wanted but it beats bankruptcy.
08/14, 12:33 PM
posted by:
A4
04focus, Porsche never gained the 51%. They don’t have squat.
08/14, 4:19 PM
posted by:
Bankruptcy2009
VW wants to compete at with the like of Ford and Toyota in terms of numbers of Cars sold
08/15, 8:35 AM
posted by:
SomeGreek
Your sooo right, fan…