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.
- 1Kremlin ‘considering stimulus plan for Russian economy’
- 2To Russia with cash: Chinese tourists offset fall in Western visitors
- 3Budapest gets bitcoin taxis
- 4International Energy Agency says oil glut is poised to worsen
- 5Top European Uber executives on trial in France for running an illegal taxi operation
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International news | euronews, latest international news
- 3Most Istanbul blast victims ‘were German’, says Turkey
- 4Partnering to grow Europe
- 5Madrid to appeal Catalan road to independence from Spain
- 6Thousands in Bucharest blame corruption for Friday’s nightclub blaze
- 7Hope vs harsh reality: challenges to global education goals in the 21st century
- 8Moldova: protesters storm Parliament
- 9Extras : euronews : the latest international news as video on demand
- 10Merroussis clinches the 33rd Athens Authentic Marathon
- 11Norway sends Syrian refugees back to Russia
- 12‘National’ funeral for Celine Dion’s husband ‘over the top’
- 13International breaking news | euronews online world breaking news in video
- 14Jorge Lorenzo clinches his third MotoGP title in Valencia
- 15latest Learning World - All Programmes | euronews : the latest international news as video on demand
- 16Benzema questioned in French sex tape case
- 17Special Reports : euronews : the latest international news as video on demand
- 18French language revolution in France
- 19Brussels remains on high alert: ‘multiple operations underway’ across Belgium
- 20world Weather | euronews: world ten day weather forecast
Renault 2015 profit up despite big hit from Russia car sales slump
Rolls-Royce stock flying high even as it halves share dividend
Top European Uber executives on trial in France for running an illegal taxi operation
Budapest gets bitcoin taxis
Total bucks trend with better-than-expected profit numbers
Wires > Business
- 21:02 CET Google says will not participate in 2016 U.S. airwaves auction
- 20:36 CET ECB in talks with Italy over buying bundles of bad loans – Treasury
- 20:28 CET Negative rates not meant to pinch bank profits – BoJ’s Nakaso
- 20:15 CET U.S., UK likely to charge multiple banks in Libor rigging – WSJ
- 20:07 CET Moody’s sees Brexit hitting whole EU; watching Poland closely
- 20:04 CET Exclusive: Intercept Pharmaceuticals explores potential sale -…
- 18:48 CET Presses to fall silent at Independent as paper goes online-only
- 18:37 CET Victims of trading scam will get back record $4.2 million says …