If you weren't paying close attention, you probably missed the climax of the Volkswagen and Porsche union. After three years of trying to plan the perfect wedding – and by "perfect" we mean one in which VW didn't have to pay $1.9 billion in tax on the transaction – and two years in which Porsche inadvertently played Bridezilla, the consummation has resulted in matter-of-fact announcements and a jargon-filled press release from VW.

So now that Porsche belongs 100-percent to VW, what does it mean? For the moment, not much that outsiders will be able to see. The eagerness to tie the knot has been about unlocking the cost savings of the unified firm, said to be €700 million ($856M U.S.), and clearing out Porsche's debt burden of something like €2.5 billion ($3.1B U.S.). The two companies already work together on models like the Panamera and Macan, and have a platform-sharing future already mapped. Filing the final paperwork means they can continue their collaboration even more closely and without regulators peering over shoulders.

Comprehensive integration will, naturally, be ongoing, but from now on, it's "'Til death do us part" or whatever that is in German. Have a read of the presser below for some number-heavy details.
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Volkswagen and Porsche finalize creation of Integrated Automotive Group

Wolfsburg, August 1, 2012 – The creation of the Integrated Automotive Group between Volkswagen and Porsche was finalized on August 1 as planned. "The path is now finally clear for a bright future together. Even closer cooperation will enable us to significantly strengthen Volkswagen and Porsche, and further expand the Group's product portfolio with fascinating new vehicles", said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen Aktiengesellschaft's Board of Management, in Wolfsburg on Wednesday.

Under the structure developed jointly by Volkswagen Aktiengesellschaft and Porsche Automobil Holding SE (Porsche SE), Porsche SE contributed its indirect 50.1 percent holding in Porsche AG to Volkswagen Aktiengesellschaft effective August 1, 2012. Volkswagen thus holds 100 percent of the shares of Porsche AG via an intermediate holding company. The cash and share consideration of about €4.49 billion is based on the equity value of €3.88 billion for the remaining shares of Porsche AG set out in the Comprehensive Agreement entered into in 2009, plus a number of adjustment items. Among other things, Porsche SE will be remunerated for dividend payments from its indirect stake in Porsche AG that it would have received, as well as for half of the present value of the net synergies realizable as a result of the accelerated integration, which amount to a total of approximately €320 million.

The accelerated integration of Porsche AG into the Volkswagen Group allows the implementation of Volkswagen AG's and Porsche AG's joint strategy more quickly. "The unique Porsche brand will continue to develop successfully under Volkswagen's multibrand strategy and proven decentralized management structure. Porsche will retain its own identity and operational independence, just like all of the other Group brands", said Winterkorn.


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  • 27 Comments
      Pitt05
      • 2 Years Ago
      Audi, Bentley, Lamborghini, Bugatti, and now Porsche, thats some line up. I hope that Quattro GmBH and Porsche work very closely on some future RS models......thinking back to the RS2, oh the possibilities.
        craigmmeyer
        • 2 Years Ago
        @Pitt05
        Don't forget that Ducati motorcycles belong to this monolithic company. RS 3 is coming I hear.
      rodzronn
      • 2 Years Ago
      VW and Porsche have been linked together since the creation of the VW type I…remember the 70’s with the Porsche-VW 914? The 924 ? this has been a long marriage already…only that now is finally both live under the same roof.
      Apollonio Ortiz
      • 2 Years Ago
      VW is solid it has always been a part of Porsche, now it is the Daddy!!
      RGT881
      • 2 Years Ago
      VW and Porsch worked together on Cayenne and Touareg many years ago.
      Kimberly
      • 2 Years Ago
      Ahhh Just like the wedding between Julia Roberts and Lyle Lovette... A porsche and a VW ...It will last ten minutes...
      T REXX
      • 2 Years Ago
      first things first... this will expand the porsche network to all VW dealers if their smart
        Dayv
        • 2 Years Ago
        @T REXX
        Just like all VW dealers sell Audis and Bugattis now?
          alancranford
          • 2 Years Ago
          @Dayv
          Great point - people don't seem to understand that other brands are owned by VW. I strongly suspect they will keep them separate brands with distinct markets similar to how Toyota handles Lexus and Ford once did Jaguar and Volvo. Glad if they can wring some savings out of it and no problem if there are joint developments as long as the Porsche name isn't degraded. I've owned 2 Porsches including a 914 back in my college days (mid 70s) that was a joint project between VW and Porsche. I still remember that certain components on the 914 had the VW logo stamped on them.
      • 2 Years Ago
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      Ascanio
      • 2 Years Ago
      ehhh.. Cayenne anybody? The article missed on the venture that brought Porsche back to speed: Porsche released a "new" car by adopting VW's Touareg, in their minds a combination of the Porsche experience with the utility of a van (most of their previous customers also has SUV's). Leaving behind my personal ideas about SUV's and the Cayenne in particular, the fact of the matter is: a cheap-to-build car with zero-development costs (swap the engine, change a few body panels and put a Porsche badge on it) has become Porsche's best-seller, bringing home the vast majority of their revenues. The Cayenne also makes huge profits, since like all SUV's it's made of cheap materials and sold at a premium only for it's bulk. If it weren't for that venture in the first place, there is a chance Porsche wouldn't have survived this far. So it's all good if most people shell out hideous amounts of money for a cheap van like the Cayenne (and are happy with it...). As long as they keep sustaining the production of serious machinery like the Carrera, Cayman and Boxter.
        alancranford
        • 2 Years Ago
        @Ascanio
        I'm hoping for a rebirth of the GT (the one that listed for around $450,000). Porsche needs another super car. Turbo Carreras and GT3s are nice but not comparable to what the GT once was. For those that aren't familiar with it (mainly since the general "GT" name refers to a number of Carrera based models) here is a link: http://en.wikipedia.org/wiki/Porsche_Carrera_GT
          sparrk
          • 2 Years Ago
          @alancranford
          They are already on it, the Porsche 960, it will be placed between the GT2 RS and the 918.
      FilioScotia
      • 2 Years Ago
      Well, DUH. It's about time. They belong together. Ferdinand Porsche came up with the idea of the small inexpensive car ordinary people could afford to buy in the 1920s, but , ironically, he couldn't get financing for it. He couldn't afford to mass produce a car for the middle and lower classes. So when Hitler came to power in the early 30s, Porsche took his idea to him and Hitler jumped all over it. He liked the idea so much he even came up with the name - Volkswagen, or "People's Car." The Germans made the early VW's in the 1930s, but only a few were actually sold. When the war started, the plant at Wolfsburg was shifted to making military vehicles for the Wehrmacht. The plant closed in 1945, but several years later it was opened again by German businessmen who thought a small inexpensive car had a future. VW and Porsche have worked together as separate companies throughout their history, but now they've returned to their origins, and they're finally under the same corporate umbrella. I just wish they would go back to making inexpensive cars ordinary people can afford. Even their cheapest New Beetle costs more than $20K.
        jokinok1
        • 2 Years Ago
        @FilioScotia
        Actually, the VW beetle design was almost a carbon copy of a prototype Lincon Zephyr, rear enging, sloping front, etc.
      axiomatik
      • 2 Years Ago
      So, now that Porsche no longer needs to support itself, can it stop making bloated mall-trucks?
      • 2 Years Ago
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      • 2 Years Ago
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