Volkswagen, Porsche finally tie the knot
Last Updated at
- 05:14 pm, August 02, 2012
VW now owns 100 per cent stakes in Porsche, while the latter is now free from a debt of close to 3.1 billion dollars.
Back in July 2012, Volkswagen Group had made its intention clear of purchasing the remaining 50.1 per cent stake in Porsche from the sports car manufacturer's holding company owner, Porsche SE. The said deal has been officially inked on August 1, 2012 and Volkswagen now holds 100 per cent of shares of Porsche via an intermediate holding company.
The deal has set back Volkswagen by approximately 5.6 billion dollars that paid off for the remaining 50.1 per cent stake and the rest going to cover some adjustment terms.
Volkswagen and Porsche have already been working together on models like the Panamera and the Macan and thus, have a platform sharing thing going on. So, what does this union mean? Nothing much, except that now with the complete integration of the two companies, could accelerate the procedure of putting in place joint strategies and developments much more quickly and without any interference from regulators. Oh, and with this deal Porsche's debt of close to 3.1 billion dollars now remains clear.
"The path is now finally clear for a bright future together. Even closer cooperation will enable us to significantly strengthen Volkswagen and Porsche, and further expand the Group's product portfolio with fascinating new vehicles", said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen Aktiengesellschaft's Board of Management, in Wolfsburg on Wednesday.
CEO Martin Winterkorn now is looking to Porsche's profitable car business to shore up his efforts to overtake General Motors Co. and Toyota Motor Corp. to become the world's biggest automaker by 2018.
The transaction adds a 12th nameplate to Volkswagen's portfolio, which also includes the latest takeover of the iconic Italian motorcycle brand, Ducati.
First Published on 05:14 pm, August 02, 2012
- Volkswagen CrossBlue and CrossBlue coupe to be made in China
- Gran Turismo 6 announced
- Skoda plans to discontinue Fabia
- Scoop: Upcoming BMW 2 Series caught undisguised
- Maruti Suzuki to foray into LCV segment with Y9T pick-up