Report: Vw to buy Porsche AG for €8 billion

Article by Christian A., on August 25, 2010

In an ironic twist of events that has Volkswagen closer to a deal to buy Porsche-AG instead of the other way around, German newspaper Der Spiegel reports that the agreement would allow for Porsche to be bought for about €8 billion ($11.28 billion).

On July 23, the Porsche supervisory board will be meeting to decide whether to finalize a deal that would give 49.9% of Porsche to Volkswagen, while still allowing for the possibility of a full acquisition.

If the deal pushes through, Porsche will be 10th car brand owned by the Volkswagen Group. Other brands include Audi, Bentley, Bugatti, Lamborghini, Seat, Scania. Skoda, VW and VW Commercial Vehicles.

Porsche AG's parent company incurred an alleged €10 billion debt due to its move to take over VW that failed because of the global economic crisis. By selling Porsche AG, the parent company will be able to pay some of this debt.

It is believed that this crisis at Porsche would lead to a restructuring of its top officials. According to Der Spiegel, CEO Wendelin Wiedeking is constructing a €100 million golden parachute so he can bail out of the firm.

Production head Michael Macht would replace him. This development further complicates the relationship between cousins, Ferdinand Piech and Wolfgang Porsche, who are said to be bitter rivals.

Piech is the chairman of VW and part-owner of Porsche, while Wolfgang Porsche is the chairman of Porsche SE and a member of the VW supervisory board.

Topics: vw, porsche, takeover

If you liked the article, share on:

Comments

Recommended

The automotive world is intensely competitive given the growing number of players, but the British car manufacturer is adamantly holding on to its spot. The 2018 Jaguar XF Sportbrake, priced...
by - June 22, 2017
Audi’s all-electric supercar, the R8 e-tron, had been discontinued last October after being in the market for under two years. The electric vehicle was then exclusive to the European market...
by - June 22, 2017
Dodge has made it clear to everyone, including its potential buyers, that the Challenger SRT Demon is a street-legal drag car - that it is unlike any of your ordinary...
by - June 22, 2017
After a number of failed attempts, Tesla finally gets an Arizona dealership license by winning a court battle that allows them to sell directly to consumers. The automotive dealer license...
by - June 22, 2017
The Insurance Institute for Highway Safety gives its Top Safety Pick Award to the 2017 Chevrolet Bolt EV, and they have got videos of it during the crash test procedures...
by - June 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries