Volkswagen calls off talks with Porsche

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Volkswagen calls off talks with Porsche

Posted Monday, May 18, 2009, 2:03 pm in Employee News

Volkswagen AG said Sunday it was indefinitely postponing talks over a planned integration with Porsche SE, but the sports car maker insisted that only the next round had been canceled, the Associated Press reported.

As the power struggle between two of Germany’s leading automobile companies appeared to increase, Volkswagen spokesman Peik von Bestenbostel told the Associated Press that the talks had been put on hold for an undetermined period of time, demanding a more direct engagement from Porsche. “Before we can take up talks again, it is necessary that Porsche adopts a clearly constructive attitude toward them,” von Bestenbostel said.

But Porsche insisted in a statement Sunday that while a working group meeting Monday on the fusion of the two car makers had been canceled, “The negotiations that were begun last week will continue as planned,” the AP reported. Earlier this month, Piech and the Porsche family agreed on a plan to integrate the Porsche car-manufacturing group with Volkswagen, with the independence of the 10 brands of both companies being ensured, the news service reported. (Associated Press/Detroit News)