Porsche and VW to integrate, put 10 brands under single roof
May 6, 2009 19:00 CET
FRANKFURT (Reuters) -- Porsche Automobil Holding SE and its Volkswagen unit will create an integrated carmaking group that unites 10 brands under one roof, Porsche said today.
The decision emerged from a meeting of the extended clan that owns Porsche and executives from VW, already Europe's biggest carmaker, to thrash out a strategy for Porsche's stalled takeover of VW.
"In the final structure, 10 brands shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured," a statement said.
It gave no more details for the plan that would include unspecified "capital measures."
The goal was to work out final details in the next four weeks after talks with VW's home state of Lower Saxony -- which can veto any sweeping changes at VW -- and labor leaders.
Volkswagen now has nine brands. The Porsche sports car band is held separately by the holding company owned in turn by the Porsche and Piech families.
Earlier, sources familiar with the matter told Reuters on that debt-laden Porsche had abandoned its target of reaching a 75 percent majority holding in VW.
Porsche said in early January it controls about 51 percent of Volkswagen's voting shares and had repeatedly said it wants to raise its voting stake to just above 75 percent this year should economic conditions allow.
Worsening conditions on the credit markets have made refinancing Porsche's 9 billion euros ($11.98 billion) in net debt more difficult.
It has also become tougher to finance the bid for complete financial control over VW, known as a "domination agreement." Analysts predict Porsche would need at least an additional 13 billion euros to take their stake above 75 percent.