Porsche and Volkswagen Will Merge

As we told you in our past reports, the German luxury manufacturer is passing through some difficult times these days. Due to large debts both Porsche and Piech families have accumulated, the company was said to be sold to Volkswagen, in an attempt to settle those debts. Ferdinand Piech, who proposed selling the company to Volkswagen and replacing its top management and Wolfgang Porsche, the supporter of a little less dramatic plan, have met yesterday to try and reach an agreement.

The result of those talks has been announced in a press release made by Porsche. We present it below, in full. The headlines: within the next four weeks, the basis for a integrated company will be set, most likely in the form of a new holding. The new structure will have ten independent brands, united under one single entity.

Another major development is that the State of Lower Saxony will most likely become the new company's largest co-shareholder. Workers will also get a say in the future of the group.

Developments on the subject are to be expected in the following weeks. We will cover the story as it develops.

"The members of the management boards of both Volkswagen AG and Porsche Automobil Holding SE have been in intensive talks about the deepening of the cooperation over the past weeks. The family shareholders of Porsche Automobil Holding SE, Suttgart, have discussed the proposals resulting therefrom, with the inclusion of capital measures, this Wednesday and argued for the creation of an integrated car manufacturing group. In the final structure ten brands shall stand below an integrative leading company alongside each other, whereby the independence of al brands and explicitly also of Porsche shall be ensured."

"On this basis both companies Volkswagen and Porsche intensify the talks in a joint working group with the relevant involvement of the State of Lower Saxony as largest co-shareholder as well as the employee representatives of both companies. It is the aim to develop a corresponding basis for decision-making on the future structure of the common group within the next four weeks."