VW has not made a decision on merge with Porsche, an executive revealed

Article by Christian Andrei, on February 28, 2012

No decision was made by Volkswagen at a supervisory board meeting on how to merge with Porsche in an effort to avoid being adversely affected by a billion-euro tax bill in the process, a high-ranking official disclosed. He told Reuters that there is a "firm commitment" on VW's part to obtain synergies as fast as possible but not at all costs.

The automaker, which owns luxury vehicle brands like Bentley and Audi, is facing a potential tax payable of around 1 billion euros or $1.35 billion if it were to purchase the rest of Porsche's automotive business before 2014. As a result, VW may postpone the purchase until 2014, the executive disclosed after the board meeting.

VW already has a 49.9 percent share of the vehicle manufacturing operations of Porsche. Last September, the automaker dismissed plans for a complete merger by the end of 2011 after legal proceedings against Porsche in Germany and the United States made the valuation of the sports vehicle manufacturer more complex.

According to the executive, the tax burden is the "key stumbling block." He also said that there is "quite a bit of homework left to be done." A banker who is familiar with the situation stated that he thinks that VW would pledge to create a special holding company to complete the transaction, allowing it to purchase the other half of Porsche's automotive business more quickly while shunning tax payments. Marco Dalan, spokesperson for Volkswagen, declined to make a comment. Porsche hasn’t commented on this report yet.

Topics: vw, porsche

If you liked the article, share on:


Login or Create new account to add a comment!


We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016
Many people have long known that the new 2018 RS5 was being developed by Audi AG. Enthusiasts the world over were excited when a prototype was seen running on the...
by - October 26, 2016
It was only recently when BMW officially debuted the new 2017 5-Series Saloon (G30) online. At that time, this range revealed that it had driving dynamics that was the best...
by - October 26, 2016
Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016