Volkswagen has brought its tie-up talks with Porsche to a halt, saying that Porsche was not ready for merger. The two German automakers planned to meet on Monday to talk about Porsche increasing its stake in the Volkswagen Group to 75 percent.
“We recognized at the end of the week that Porsche is lacking several fundamental conditions for the discussions,” a spokesman for VW told Reuters. He went on to say that Porsche does not have a strategy and needs to sort out internally where the sports car manufacturer itself his headed.
The VW spokesman said that the company is open to when the talks will continue.
Porsche had no comment on the situation.
Porsche currently owns more than half of Volkswagen and is looking to gain further stake in the company which will include control of Lamborghini, Bugatti, Audi and others. It was reported last week that most favor Volkswagen CEO Martin WInterkorn to lead the new group.
– By: Omar Rana