The supervisory board of
Group just gave approval for
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
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
and again in
. 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]