Volkswagen-Porsche merger could be delayed by 2012

Article by Christian A., on February 24, 2011

Due to financial and legal hurdles, Volkswagen AG's planned merger with Porsche SE could be delayed into 2012. The integration is already in full swing with regards to manufacturing.

Porsche said a longer-than-expected probe into allegations of share-price manipulation by two former board members is likely to push completion of the merger into 2012.

Porsche recently said that while the probability of success decreases as the process drags out, it believes the merger will go ahead. In 2010, VW already said that the merger may be held up by U.S. lawsuits and German tax disputes.

As VW and Porsche are working on such issues, they are moving on with the merger on the factory floor. Plant director Ludger Teeken said a VW plant in Osnabrueck, Germany, will build Porsche Cayman and Boxster models.

VW already assembles the bodies for Porsche's four-door Panamera and Cayenne sport-utility vehicle at VW plants.

Stuttgart-based Porsche and Wolfsburg-based VW, in August 2009, agreed to merge following a failed attempt by the sports-car maker to take over its larger rival.

Porsche shareholders favored a EUR5 billion ($6.9 billion) share sale that would facilitate a merger by lowering debt piled up as part of its earlier takeover attempt.

Stipo Bralo, a Frankfurt-based analyst at SEB AG, said that VW is moving forward to fit Porsche into its structure. He also said that the merger is fully underway in operating terms. [via autonews - sub. required]

Topics: volkswagen, porsche

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 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