August 3, 2012: Volkswagen has completed its takeover of Porsche, two years earlier than planned. Citing tough global market conditions, VW said the acquisition had been brought forward to begin increasing economies of scale.
VW chief executive Martin Winterkorn said the move will “significantly strengthen Volkswagen and Porsche, and further expand the group's product portfolio with fascinating new vehicles”.
VW paid 4.49 billion euros (Rs 30,698 crore) for a 50.1 percent stake in Porsche, taking its ownership stake to 100 percent. The deal ends a seven-year saga between the two firms, which was instigated in 2005 when Porsche started acquiring VW shares.
The accelerated integration of Porsche into the Volkswagen Group allows the implementation of Volkswagen and Porsche joint strategy more quickly. "The Porsche brand will continue to develop successfully under Volkswagen’s multi-brand strategy and proven decentralised management structure.
Porsche will retain its own identity and operational independence, just like all of the other Group brands," said Winterkorn.
Porsche is now the 12th brand in VW's stable. VW's stated aim is to become the world's largest car maker by 2018.