Porsche's takeover of VW facing delays?
With present economic conditions shrinking Porsche's available cash, the automaker may have to adjust or delay its plans to gain full control of Volkswagen. In January, Porsche raised its stake in Volkswagen to 50.76% gaining a majority stake. The Stuttgart-based automaker wants to purchase more of VW, but it stressed that economic conditions must support the move.The economy isn't the only thing keeping the family-owned automaker from proceeding. Even though Porsche has the ownership it needs in VW, the German government isn't immediately changing its position on Volkswagen Law, allowing Lower Saxony to keep a blocking minority vote. Most experts think Porsche will simply wait out the economy and wait for the VW Law, already criticized by the European Commission, to be removed. Time appears to be on Porsche's side, for now.
[Source: Wall Street Journal]
Reader Comments (Page 1 of 1)
Sektor 6:13PM (4/07/2009)
So much for German efficiency.
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CT A 7:40PM (4/07/2009)
Please don't let Porsche take over VW..
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krische 7:45PM (4/07/2009)
Hope everyone likes the current designs of VW vehicles, because you know porsche will never change the body style ;)
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tad 10:29AM (4/08/2009)
It's not that clear that the VW-law is to be removed by the european commission, since there are several other european automakers and other companies which are secured by comparable laws: Renault-Nissan, Peugeot, Fiat are secured from alein takeovers as well. Volkswagen is only used to stuatate an example since it's the largest company in the european union with such a law.
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Level 4:43PM (4/08/2009)
Its crazy to see that a company that makes pretty much 911's is able to afford to buy a large company as VW with the rest of the brands it has in its portfolio...this begs the question how over priced are the 911's really are??? 50K I would assume...
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