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.
- 1Banks lose billions as Europe’s markets jitter over Greece
- 2China shipping provides export lifeline for Moldovan exports
- 3Food fight as Russia extends ban on EU, US edibles
- 4Bank closures a nightmare for business as Greeks face shortages
- 5Alfa Romeo revival likely to burn cash not rubber warn analysts
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Spain’s first case of diphtheria in 30 years: parents of six-year-old ‘oppose vaccines’
- 3[Live updates] NGO flotilla bids to break Israeli blockade of Gaza
- 4Greek debt crisis is “absolute supremacy of capital over humans”
- 5[LIVE UPDATES] Greek debt deadline looms
- 6[LIVE UPDATES] France: man decapitated, several wounded in chemical plant attack
- 7Israel prepares to repel boarders as ‘Freedom Flotilla 3’ tries to run Gaza blockade
- 8Large Hadron Collider ready to embark on an unprecedented voyage of discovery
- 9Istanbul Gay pride quashed by riot police, rubber bullets and water cannon
- 10NewsWires : euronews : the latest international news as video on demand
- 11Greek debt summit – Live updates
- 12‘Distractingly sexy’ scientists hit back in lab chemistry polemic
- 13Romania, Hungary and Bulgaria focus of EU cash fraud probes
- 14Interpol issues ‘red notice’ for accused ex-FIFA bosses
- 15Summit up in Brussels as Greek proposals give food for thought and rumours fly
- 16Battle of Waterloo, live-tweeting 200 years on
- 17Greek PM faces day of crucial bailout talks in Brussels
- 18Citizens take power in Spain’s largest cities as a political revolution sweeps the country
- 19Italy discovers biggest illegal waste dump in Europe
- 20Greek banks, stock exchange will not open on Monday, Tsipras announces
Wires > Business
- 06:38 CET China parliament ratifies BRICS Bank agreement
- 05:42 CET China June factory, services surveys fuel hopes economy levelling…
- 04:21 CET Japan business mood improves, capex plans at decade high – …
- 04:19 CET South Korea June exports fall for sixth month, government stimulus…
- 04:02 CET Santander UK sets up new structure to meet ringfencing rules
- 03:50 CET Australia’s Asciano says considering Brookfield’s 4.32…
- 03:13 CET China June services PMI rises to 53.8 from 53.2 in May
- 23:59 CET Nike Chairman Phil Knight to step down in 2016