“Wedding” Porsche And VW Is Delayed

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“Wedding” Porsche And VW Is Delayed
“Wedding” Porsche And VW Is Delayed

Video: “Wedding” Porsche And VW Is Delayed

Video: “Wedding” Porsche And VW Is Delayed
Video: What happens when you Show Up Late on ytour wedding.OUCH. 2023, October

The merger of the two car manufacturers Porsche and VW could be delayed. The reason are smoldering legal disputes, said VW boss Martin Winterkorn.

The planned merger of Porsche and Volkswagen for the coming year threatens to be delayed. In extreme cases, it could take several years before Porsche is completely under the wing of the VW Group. However, the union of the two car manufacturers is not in danger, emphasized Porsche SE boss Martin Winterkorn on Tuesday in Stuttgart. "The integrated automotive group is being implemented."

Legal disputes as the reason

The reason for a delay could be the simmering legal disputes in the USA and Germany after the lost takeover battle with VW, said Winterkorn. Mutual funds in the US are seeking billions in damages for suspecting misinformation. According to Porsche SE CFO Hans Dieter Pötsch, the original schedule could also be postponed because the tax and legal review has not yet been completed.

"Our declared goal is and will remain the merger," emphasized Winterkorn. The plan is to merge Volkswagen AG with the parent company Porsche Automobilholding SE. Should this not succeed, the carmakers have kept a back door open to completely integrate Porsche into the VW group in another way.

If the worst comes to the worst, Europe's largest car manufacturer can also take over the remaining 50.1 percent of the shares in the Porsche sports car business; VW currently holds 49.9 percent. However, this would only be possible in the period between November 15, 2012 and January 31, 2015. The Stuttgart-based company lost its grip on the originally planned takeover of VW and should now be gradually integrated into the VW group. Because of the lost takeover battle, Porsche is fighting legally on numerous fronts. The Stuttgart-based company had secured a majority in Volkswagen in 2008 with difficult-to-understand share deals and triggered landslide-like share price movements.

Suspicion of market manipulation

In the US, a group of mutual funds has sued the Swabians for alleged misinformation and market price manipulation. It's about billions of dollars in damages. In mid-January, the court wants to decide whether it will allow the lawsuit. If this is the case, Porsche faces years of litigation. In Germany too, the public prosecutor's office is investigating suspected market manipulation. The aim is to clarify whether Porsche may have misinformed investors and players on the stock exchange in the course of its entry into VW. The first interim results are expected at the end of the year.

Regardless of these problems, Porsche wants to tackle the next step in the merger quickly. On November 30, Porsche shareholders are to approve a capital increase in the first half of 2011 at the annual general meeting. This should bring up to five billion euros. The money is also intended to reduce Porsche SE's mountain of debt. Due to the failed takeover of VW, the holding still has debts of around six billion euros.

Porsche and VW are also pushing ahead with operational cooperation. Together, numerous large and small cooperation projects have been launched, said Winterkorn. "With its high level of sports car expertise, Porsche will play an important role in the group." With new models and additional series, the Stuttgart-based company should increase its sales to 150,000 sports and off-road vehicles in the medium term.

In the past 2009/2010 financial year, Porsche increased sales by almost nine percent to 81,850 vehicles. At 7.8 billion euros, sales reached the highest level in the company's history. In the auto business, the Stuttgart-based company increased its operating profit significantly to 1.2 billion euros (previous year: 700 million euros). Even at the badly battered parent company Porsche SE, the loss shrank to 454 million euros (previous year: 3.6 billion euros). The reason for the loss are burdens in the course of the planned merger. (dpa)