Porsche incorporated into VW

Updated: 

The sports car manufacturer Porsche is finally to become part of the Volkswagen group. Volkswagen AG and Porsche Automobil Holding have now reached a basic agreement for the creation of an integrated automotive concern that includes Porsche and comes under the overall management of Volkswagen.

Up to the end of 2009, Volkswagen will have an initial 42% shareholding in Porsche AG; furthermore, the distribution side of the business, Porsche Holding Salzburg, will be acquired by VW; and in the year 2011, Porsche SE will merge with Volkswagen. Despite these changes, Porsche will remain a separate operation with HQ in Zuffenhausen. The new group supremo is to be VW Chairman Martin Winterkorn, who also becomes boss of Porsche Holding. Precise details of how the plan is to be implemented will be worked out over the next few weeks and months.