Porsche Plans Merger With European Carmaking Giant Volkswagen

Recently the luxury car manufacturer Porsche Automobil Holding announced that instead of taking over Volkswagen it decided to explore a merger with the biggest carmaker on the European continent.

It is worth mentioning that the merger would mean a climbdown for the luxury car maker due to the fact that Porsche hits brakes on its goal to gain 75 percent stake of Volkswagen. Now Porsche is the owner of about 51 percent of the European giant.

Currently there have been no details provided regarding the merger. On Wednesday Porsche announced that it agrees to make an "integrated car manufacturing group" in 4 weeks. In a statement, the luxury car maker informed that the new group will include 10 brands under one roof. Up till now the two companies have been running independently, reports Reuters.

Europe's biggest carmaker has owned nine brands, including Volkswagen, Lamborghini, Skoda, Bentley, Bugatti, Audi, Scania, Seat and Volkswagen Commercial Vehicles. In its turn the Porsche Automobil Holding has run its sportscar brand separately.

The Volkswagen-Porsche working group is going have a discussion regarding the shape of the new company. The discussion will include questions on the state of Lower Saxony, the place where VW is based, and worker representatives. Christian Wulff, the premier of Lower Saxony stated that he is ready to enter talks regarding the future of the German giant, Volkswagen.