Volkswagen-Porsche Is Born

The war has ended as Volkswagen and Porsche finally reached an agreement for the creation of a so-called integrated automotive group to be formed from the progressive participation of the two companies. Specific details on the transaction are yet to be revealed but Volkswagen says the resulting entity's main goal will be to "reserve the Volkswagen Group’s financial solidity and sustain its ability to act as well as ensuring Porsche’s independence."

The Porsche and Piech family will still hold a share in the newly-formed group, Volkswagen commented on a in statement. Additionally, Qatar will also get a seat among Volkswagen's shareholders and will act as a "strategic partner committed to supporting the goal of an integrated automotive group". Porsche will continue to operate as an independent company based in Stuttgart.

"The envisaged union of Volkswagen and Porsche follows a compelling industrial logic and offers promising perspectives: it makes two strong companies even stronger. Volkswagen and Porsche have excellent know-how at their disposal and can use their resources even more efficiently by combining them. For this reason, we expect additional growth opportunities, safeguarding existing jobs and creating new ones," Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, said.

"At the same time, we can call on our considerable experience in the integration of proud and successful brands rich in tradition. Like Audi today, Porsche can also continue its independent development under the aegis of Volkswagen and preserve its own identity. We have great respect for the achievements of the Porsche workforce and are convinced that Porsche can enrich the Volkswagen Group – just as Volkswagen can vice versa enrich Porsche."

More on the subject is expected to come in the following days.