Volkswagen Acquires 49.9% Stake of Porsche AG
Posted: Dec. 09, 2009 11:12 a.m.
Volkswagen has officially acquired a 49.9 percent share of Porsche AG. The two companies have been talking about the proposed merger since May, after Porsche’s initial attempt to acquire the larger VW brand fell through. Sources inside VW told the Associated Press that the company hopes to fully acquire Porsche sometime in 2011.
Volkswagen Group currently owns a number of major brands including Lamborghini, Bentley and Audi. Examiner.com suggests "With this merger and the rumored partnership with Suzuki, Volkswagen is the largest automaker – period."
The official press release notes, "Porsche AG is the world's most profitable automobile manufacturer" thanks to a sales return of 10.3%.
What does this mean for VW? According to Autoblog, "In acquiring Porsche, VW not only gains a premium brand that is still among the most profitable in the business, but VW expects its operating profit to jump by €700 million ($1.03B U.S.) over time due to cost-saving synergies."
Although some enthusiast car buyers may be put out by the merger, others are more responsive. Examiner speculates that the move might be "A boon for automotive enthusiasts who do not have the financial means to buy their own island. Simply put: a true poor-man’s Porsche may be on its way soon!" said Nathan Adlen of Examiner.com.
LINK:
Volkswagen Acquires 49.9% Stake of Porsche AG - U.S. News Rankings and Reviews
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