VW & Porsche could become Auto Union

It looks like Porsche and VW may come together under the Auto Union banner.

Of course, all these shenanigans have come about because of Porsche’s desire to gobble up VW. The plan looked great, and Porsche grabbed a big chunk of VW stock. But it did it with borrowed money and has come severely unstuck as the recession bites and revenues tumble. Porsche has already had to be bailed out with a loan from VW in recent months as it ran out of cash, and the wrangling over the future has rumbled on for ever.

But the resignation of Porsche boss Wendelin Wiedekin last months has paved the way for a rapprochement between the two companies, and it would now appear that VW will buy Porsche by taking a 49% stake, whilst Porsche continues to operate as an independent entity under the auspices of the new group – which is where the ‘Auto Union’ bit comes in. Probably more about face-saving for Porsche. But if it works, it works.

Looks like it’s a done-deal then. Mind you, we’ve thought that before.

By Cars UK