In late July Porsche announced Wendelin Wiedeking would be leaving his position as the company's CEO to be replaced by Michael Macht, clearing the way for the supervisory board at Volkswagen to lay the foundation for an integrated company with Porsche under VW leadership. Today that merger has moved forward, and reports indicate the Auto Union name could be revived to brand it.
According to a statement released by the VW Group on the announcement of the acquisition, "The integrated automotive group will be formed from the progressive participation of Volkswagen in Porsche AG and the subsequent merger of Porsche Automobil Holding SE and Volkswagen AG. Porsche will remain an independent company headquartered in Stuttgart."
Today's report re-affirms Porsche's independence, and the Auto Union name is apparently being considered to help preserve the idea that it's not Volkswagen running the whole show.
The Auto Union name was originally given to a merger of four German carmakers - Horch, Audi, DKW and Wanderer - in 1932. The brand went on to fame in motorsports through the 1930s, but was disrupted by World War II, and subsequently went through a number of reformations, eventually ending in a renaming to Audi AG in 1985.
Volkswagen is buying a 49% stake of Porsche AG, the company's sports car business, however, with final valuations to be set on Thursday, reports Automotive News. Qatar, which has recently sought a share of Porsche and VW both, has also been welcomed into the deal as well as a key shareholder.
VW board chairman Martin Winterkorn described the company's plans in July, saying, "Volkswagen and Porsche have excellent know-how at their disposal and can use their resources even more efficiently by combining them. For this reason, we expect additional growth opportunities, safeguarding existing jobs and creating new ones.
"At the same time, we can call on our considerable experience in the integration of proud and successful brands rich in tradition. Like Audi today, Porsche can also continue its independent development under the aegis of Volkswagen and preserve its own identity. We have great respect for the achievements of the Porsche workforce and are convinced that Porsche can enrich the Volkswagen Group – just as Volkswagen can vice versa enrich Porsche.”
The comparison to Audi may be the most apt of all, as it will be the balance between Audi and Porsche in the mass market that will likely shape both brands' future product lineup.
Source:
MotorAuthority