Report: Volkswagen to complete purchase of Porsche this year

Porsche

Here is something we haven’t heard about in a while. Reports from Germany state that Volkswagen Group may complete its purchase of 50.1 percent share in Porsche Automobile Holding SE. If completed, Volkswagen will get around having to pay 1 billion euros in taxes if it completes the purchase before 2014.

A report from a German magazine also said that Volkswagen will make strides to ensure Porsche has the independence within the Volkswagen Group to ease resistance from Porsche labor leaders.

Volkswagen currently owns 49.9 percent of Porsche’s automotive department.

While declining to comment on the report, Volkswagen spokesman Christine Ritz told Bloomberg that the purchase is ‘still in the process.’

“Of course all the parties are interested in achieving the goal of an integrated automotive group as soon as it makes economic sense to do so,” Ritz said. “As soon as we have made a decision to achieve that goal, we will communicate that.”

– By: Omar Rana

Source: AutoNews