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VW – Porsche Formally Say “I Do”

Unlikely merger now complete.

by on Aug.02, 2012

Now kissing cousins? Wolfgang Porsche, (l), and Ferdinand Piech bring two sides of the family together.

The on-again/off-again marriage of Volkswagen and Porsche has been completed, the two German makers saying, “I do” after resolving a list of legal problems that seemed likely, only months ago, to scuttle the proposed alliance.

The tie-up, which actually brings together long-feuding heirs of German automotive legend Ferdinand Porsche was the end result of an unlikely David-v-Goliath bid by the little sports carmaker to acquire its bigger rival.

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“The path is now finally clear for a bright future together,” said Martin Winterkorn, chief executive officer of Volkswagen and Porsche SE, in a prepared statement. “Even closer cooperation will enable us to significantly strengthen Volkswagen and Porsche, and further expand the Group’s product portfolio with fascinating new vehicles.”

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European Crisis Fails to Slow VW Earnings Growth

“A very good start,” as profits exceed optimistic forecasts.

by on Apr.26, 2012

VW plans to introduce as many as 40 new models across its various brands this year. The Golf R is shown here.

The European economy may be teetering towards disaster but it was full steam ahead for Volkswagen AG, the German automaker handily exceeding analysts’ already optimistic expectations with a first-quarter profit of $4.2 billion.

The 87% jump reflected VW’s steady sales gains around the world, especially in the United States, along with China, Russia and other emerging markets.

“With the first quarter we have had a clearly good start to the year,” said Volkswagen Chief Executive Martin Winterkorn in a prepared statement.

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In Euros, VW’s net profit rose to 3.17 billion, with pretax profits up 93%, to 4.3 billion Euros.  Revenues jumped to 47.3 billion Euros, a 26% gain driven by an 11% increase in worldwide vehicle deliveries. The maker sold 2.21 million vehicles during the quarter, which could put it in a position – if it continues that trend – to take on U.S. rival General Motors for the global automotive sales lead this year.

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VW and Porsche Agree to Merge

The latest sign of a global industry consolidation.

by on May.07, 2009

The ties between Porsche and Volkswagen date back to the latter's founding, the Beetle developed by Ferdinand Porsche. More recently, they've worked together on the VW Touareg and Porsche's Cayenne, the GTS version shown here.

The ties between Porsche and Volkswagen date back to the latter's founding, the Beetle developed by Ferdinand Porsche. More recently, they've worked together on the VW Touareg and Porsche's Cayenne, the GTS version shown here.

In the latest sign of a rapidly accelerating global automotive consolidation, Volkswagen and Porsche have agreed to merger.

What’s unusual about the deal is that here the Goliath, Europe’s largest automaker, is effectively being taken over by the industry’s David, the small but hugely profitable luxury manufacturer.

That something would happen between the two German manufacturers has been anticipated for months, as Porsche has steadily expanded its stake in the larger automaker, buying up 51 percent of Volkswagen stock.

But VW hasn’t been an entirely passive target.  Its regional government, Lower Saxony, has long held a controlling 20 percent “golden” share in the company and had originally been expected to block a full takeover in order to protect both its investment and the huge job base at Volkswagen’s headquarters factory town.  Wolfsburg sits just miles from where the dividing line between West and East Germany used to run.

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