• Mar 3rd 2008 at 1:57PM
  • 11
The supervisory board of Volkswagen Group just gave approval for Porsche AG to take a majority stake in the people's automaker. Porsche currently owns 31% of Volkswagen, and this move will ultimately increase that share to 51%. The increase in ownership is estimated to cost Porsche upwards of $20 billion, although the financial deets have not yet been released. Porsche is saying that owning a majority stake in VW will not result in the two companies combining, creating a German mega-automaker of biblical proportions. Don't expect things to change overnight for either company, as transactions like these generally take months to complete, if not years.

This move wasn't unexpected, either. Porsche has slowly been increasing its interest in VW over the past several years as we reported in June 2006, April 2007 and again in June 2007. Recent announcements that Porsche may use Volkswagen diesel powerplants in its Cayenne SUV now seem even more likely, and exchanges of technology, components and production capacity between the two are likely to increase.

[Source: Detroit News]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 7 Years Ago
      So.. i can trade my leased Jetta for a leade Cayman and not get hurt by changing brands???? Now that would be great! The People's Cayman!
      • 7 Years Ago
      Remember this the next time someone pulls the "poor Porsche" argument.

      Poor Porsche, they shouldn't have to deal with CO2 limits.
      Poor Porsche, we can excuse their stupid SUVs because it's the only thing keeping them alive.

      The have enough money to buy the largest automaker in Europe. Don't feel sorry for them.
      • 7 Years Ago
      To whomever made the graphics that accompanies this post: Please turn in your copy of Photoshop. You cannot mix inner shadow & drop shadow on the same character.
        • 7 Years Ago
        actually they already did. it looks like ass but what ever.

        it's bright green and gets everyones attention :/ (sarcasm)
      • 7 Years Ago
      Wow. Cant wait to see what comes out of this...
      • 7 Years Ago
      The tuning company for VW's now owns VW...I love how the world pans out.
      • 7 Years Ago
      What happens to Lamborghini? And what about the R8 and ultra-high performance Audis? All of those compete with some of Porsche's current and future lineup....

      • 7 Years Ago
      Sign me up for a VW branded 911 and price tag :) /sarcasm
      • 7 Years Ago
      Maybe Porsche can make a dent in the quality control department. I really like some of VW's cars but their reliability worries me.
    Share This Photo X