Porsche and VW to merge 10 brands under single roof

Porsche has announced it is partnering with the Volkswagen unit to create an integrated manufacturing group that unites 10 brands under one roof.

The decision followed a meeting last night between Porsche and VW executives, to thrash out a strategy for Porsche’s stalled takeover of VW.

“In the final structure, 10 brands shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured,” a statement said.

Porsche gave no more details for the plan that would include unspecified “capital measures.” looking “to develop a corresponding basis for decision-making” within a month.

Volkswagen is currently Europe’s largest automaker and currently rolls out nine brands while Porsche builds its namesake sports cars and Cayenne SUVs.

Volkswagen says it “welcomes the decision by representatives of the Porsche and Piëch family shareholders” and talks regarding the future structure will now take place between the two companies, representatives from their workforces and VW’s home state of Lower Saxony — which owns 20% of the carmaker.

Porsche announced back in January that it had built its stake in Volkswagen to more than 50% with an eye toward bringing it up to 75%. Porsche, however, is grappling with mounting debt amid the global auto recession

In the UK, VW’s latest TV ad was restricted to post-watershed viewing by the Advertising Standards Authority after the Golf ad received 1,066 complaints.
, the fifth-highest number ever, for being likely to cause “serious offence or distress” if shown earlier in the evening. It now must not air when children might be watching.

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