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In a not unexpected move, Porsche announced earlier today they will increase their current 31% ownership in VW to an expected 51%. Porsche has slowly been increasing their position in Volkswagen since mid-2006. Cost of the transaction is estimated at around $20 billion (give or take a bit for debt).
The official statement from the company is typical Porsche speak. According to Wendelin Wiedeking, Porsche’s CEO: “Our aim is to create one of the strongest and most innovative automobile alliances in the world, which is able to measure up to increased international competition.” In other words, we plan to create the strongest and most powerful car company in Germany (if not the world) and we will take on all comers.
While this deal will take time to close, once completed it should be beneficial for both organizations.
More to follow as Porsche release more information.
[Source: Detroit News, Motortrend]
