Porsche SE, Volkswagen complete their awaited merge

Article by Christian Andrei, on August 2, 2012

Porsche SE and Volkswagen completed their eagerly awaited merge on Wednesday. Many analysts have come out to say that the tie-up of the two companies will pose a huge potential. Last Tuesday, Porsche SE reported a profit of 1.15 billion euros ($1.41 billion) in the first six months of the year compared to 149 million euros the previous year.

The automaker said that net income is predicted to be in the "high" single-digit billions of euros this year, which include one-time gains from merging with VW. Porsche SE, a holding company that owns half of the stock of Porsche AG, is the biggest VW shareholder, with 50.7% of VW's common stock. VW is already the owner of half of the sports carmaking business of Porsche. The remaining half was scheduled to be bought on Wednesday.

It was in August 2009 that the two companies had first entered an agreement for a full merger. At that time, Porsche had incurred over 10 billion euros of debt in a botched attempt to take over VW, resulting to disputes between the Porsche and Piech families. VW purchased 49.9% of Porsche's sports car operations in December 2009 for 3.9 billion euros. It had aimed to acquire what’s left via a share-swap with the holding company.

But last year, the automakers withdrew the merger plan due to U.S. and German investor lawsuits that blamed Porsche for secretly gathering VW shares. As a result, billions were lost by short-sellers. Last July 4, an agreement was made by VW and Porsche to permit VW to purchase the remaining half of Porsche for 4.46 billion euros and evade a tax bill of as high as 1.5 billion euros by moving a single VW share to Porsche.

These two companies have already partnered in numerous areas in their operations. VW and Audi, its luxury division, builds the bodies for the Cayenne SUV and Panamera coupe. These are the two top-selling models of Porsche. The Macan compact SUV, the next model from Porsche, will be jointly developed by the two companies. The Macan will arrive at showrooms in 2014.

Topics: porsche, vw

If you liked the article, share on:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016