Volkswagen set to buy 49% of Porsche, combined entity could be called ‘Auto Union’

Volkswagen and Porsche have both agreed on details to merge the sports car maker into Europe’s largest automaker. Porsche would be the 10th brand to join Volkswagen Group, which already includes brands such as Audi, Bentley, Skoda and Seat.

Volkswagen is set to purchase a stake of up to 49 percent in Porsche AG, creating what it calls an “integrated” automotive group. The whole process is expected to be completed by 2011. The combined company is expected to generate more than 120 billion euros in pro-forma revenue from the sale of nearly 6.4 million vehicles.

The combined entity could be named “Auto Union” and will be led by Volkswagen’s CEO Martin Winterkorn.  Winterkorn has given assurances that Porsche would remain an independent brand and stay true to its products.

– By: Omar Rana

Source: Reuters