Germany’s Volkswagen and Porsche have completed their long-awaited tie-up.
That came one day after Porsche posted a six-month profit of 1.15 billion euros, compared to a 149 million euro profit a year earlier.
Once integration is completed, the two expect to gain over 700 million euros in savings in development, purchasing and production and erase Porsche’s 2.5 billion euros of debt.
Volkswagen’s purchase of the second half of Porsche adds the super luxury – and super profitable – sports cars such as the iconic 911 model to its line-up.
VW is already Europe’s biggest carmaker. It is aiming to be the world number one by 2018.
Both companies already cooperate in many areas. VW, which also includes luxury division Audi, makes the bodies for the Cayenne SUV and Panamera coupe, Porsche’s two best-selling vehicles. They will jointly develop Porsche’s next model, the Macan compact SUV, due to hit showrooms in 2014.
Long road to merger
The two manufacturers had first agreed a full merger in August 2009, after Porsche racked up more than 10 billion euros of debt in a failed attempt to take over VW, sparking feuds among the Porsche and Piech family dynasties.
VW bought 49.9 percent of Porsche’s sports car operations in December 2009 for 3.9 billion euros and had sought to acquire the remainder through a share-swap with the holding company.
The car makers dropped the merger plan last year because of US and German investor lawsuits accusing Porsche of covertly amassing VW shares, causing short-sellers to lose billions.
But on July 4, VW and Porsche agreed a deal allowing the Wolfsburg-based manufacturer to buy the remaining half of Porsche for 4.46 billion euros and avoid a tax bill of up to 1.5 billion euros by transferring a single VW share to Porsche.
- 1Snowden, Assange and Manning statues unveiled in Berlin | euronews, world news
- 2Chomsky says US is world’s biggest terrorist | euronews, the global conversation
- 3euronews live TV - News | euronews : the latest international news as video on demand
- 4Nepal: ‘equally big earthquakes coming in eastern regions,’ expert tells euronews | euronews, world news
- 5It’s a girl: Britain’s Duchess of Cambridge gives birth in London | euronews, world news
- 6How Nepal earthquake devastated Kathmandu’s UNESCO heritage | euronews, world news
- 7Chernobyl Children: what makes Ukrainians born in 1986 different? | euronews, world news
- 8Juncker to Hungarian PM Orban: “Hello, Dictator!”
- 9International breaking news | euronews online world breaking news in video
- 10Exclusive: unrest in FYR Macedonia could hit other Balkan countries warns Serbian PM | euronews, world news
- 11Evidence of ancient wine found in Georgia a vintage quaffed some 6,000 years BC
- 12Andrea Ferrari: the graphene guru | euronews, science
- 13International tv news | euronews: European and International tv news bulletin
- 14Portuguese language reform law goes global | euronews, world news
- 15EU membership remains Serbia’s priority, says PM Aleksandar Vucic | euronews, the global conversation
- 16Watch: France’s Jean-Marie Le Pen clashes with UKIP MEP Woolfe | euronews, world news
- 17Spain: the viral soldiers fighting in Madrid and Barcelona mayoral races | euronews, world news
- 18How young translators are helping knit European culture together | euronews, generation y
- 19eurovibes - a selection of Europe’s best music talent
- 20We will not be moved! China’s urban spread resistance [PHOTOS]
Wires > Business
- 08:41 CET Iran’s oil minister says OPEC unlikely to change output ceiling -…
- 08:18 CET Renault in Turkey offers concessions to striking workers
- 02:14 CET Fiat Chrysler CEO approached GM about a merger, was rebuffed – NYT
- 21:25 CET Daimler and Qualcomm to develop in-car tech, wireless charging
- 20:40 CET Bank of England confirms EU exit research after email misfire
- 17:59 CET Greek PM says on final stretch towards deal with lenders
- 14:35 CET No Pacific trade deal meeting until U.S. fast-track passes – Chile
- 13:15 CET Germany’s Merck expects drug division to drive growth-Euro am…