Lady LUX

It seems that our previous report on the ‘merger’ between the most unlikely pair, VW and Porsche, is currently on the rocks. Volkswagen is putting on the brakes, stating disagreements on the clear financial position of Porsche.

At this time, I am not prepared to risk the company’s financial stability by continuing talks with debt-heavy Porsche. For a merger of Volkswagen and Porsche, we must systematically analyse the initial position and get a clear picture of the real situation at Porsche. . –Martin Winterkorn, VW CEO, Guardian.co.uk

Porsche shares fell immediately with this news, although many say the deal is not completely off the table just yet.

Conflict over financial statements and debt amounts are not the only thing that could be interrupting this deal! There seems to be some concern from internal employees within both companies. ‘According to one report, Porsche workers will hold their first ever strike today in protest at the plan.’

LUXies we will keep you updated on what comes across the wires. Until then, continue to LIVE.LOVE.LUX.

Tagged in: germany, economy, conflict, financial issues, volkswagen, car makers, porsche, merger, trouble,