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]

Share This Photo X