Several months ago Porsche was poised to buy Volkswagen. Today Volkswagen received the approval it needed to do just the opposite.
A “supervisory board” meeting, comprised of board members from both Volkswagen and Porsche, as well as the Porsche and Piëch families and the German State of Lower Saxony, today gave unanimous consent to a “integrated automotive group” that will by all accounts see Germany’s largest automaker take control of its most storied sports car manufacturer.
The move comes just a day after Porsche ousted its CEO Wendelin Wiedeking.
Dr. Wolfgang Porsche said that, “Porsche will preserve the myth and identity of the Porsche brand in the integrated group,” and added that the deal with Volkswagen will allow for further growth.
Chairman of the board Dr. Ferdinand K. Piëch echoed that statement saying that, “Together, Volkswagen and Porsche have all it takes to occupy a leading position in the international automotive industry.”
The details of the deal will be arrange over the next few months as Porsche joins a growing Volkswagen Group of companies which includes Bentley, Audi, Lamborghini, Seat and Bugatti.
Official release after the jump:
Broad approval for integration of Volkswagen and Porsche
Wolfsburg/Stuttgart, July 23, 2009 – The Supervisory Board meetings of Volkswagen Aktiengesellschaft and Porsche Automobil Holding SE which took place in Stuttgart on Thursday cleared the way for an integrated automotive group combining Volkswagen and Porsche. The details of a final joint concept will be worked out over the coming weeks. Representatives of the Porsche and Piëch families, the State of Lower Saxony and the workforce of both companies have however already expressed their great satisfaction with the foundations that have now been laid.
The Chairman of the Supervisory Board of Volkswagen Aktiengesellschaft, Dr. Ferdinand K. Piëch, sees the integrated group clearly on course for success: “Together, Volkswagen and Porsche have all it takes to occupy a leading position in the international automotive industry.” Talking in Stuttgart, Dr. Wolfgang Porsche emphasized that today’s resolutions represented a landmark decision and a milestone achievement for the future, adding: “Porsche will preserve the myth and identity of the Porsche brand in the integrated group. That brings new prospects for growth.”
The labor representatives Bernd Osterloh, Chairman of the Group Works Council of Volkswagen, and Uwe Hück, Chairman of the Group Works Council of Porsche, were extremely positive in their assessment of the perspectives for the integrated group. According to Osterloh: “We are definitely heading in the right direction. Over the coming weeks, we must make sure the employees benefit from the new perspectives, too.” Hück commented: “Porsche will retain its independence in the integrated automotive group. Porsche must remain Porsche.”
The Prime Minister of Lower Saxony, Christian Wulff, underlined that the solution represented the best course for both companies: “This solution accommodates the interests of all concerned and safeguards the strength and performance of Germany’s automotive industry.”