Volkswagen + Porsche Join Forces
What do you get when you cross the traditional lines of VW with the sporty flavor of the Porsche? Well LUX nation, we may never find out even with the newly announced merger between both German carmakers, Volkswagen and Porsche. It seems that that they have decided to merge only their manufacturing operations in order to address this soft market.
This newly integrated car manufacturing group is expected to be in place within the next month. The fusion will see 10 brands united under one roof. Nine are owned by VW and the 10th is the Porsche sports car brand.
The German rivalry between both carmakers, topic of many headlines and was deemed the ‘David and Goliath battle,’ has now come to a screeching halt with this new declaration! One of the major reasons for this business move comes down to the 9 billion in debt that Porsche had accumulated trying to follow through on early threats of trying to take over Volkswagen. So, it’s definitely an interesting ending to this public battle, or should we say beginning? It seems both companies are adamant that “the independence of all brands is ensured.”
Learning from past car mergers, like Daimler-Chrysler, the question still remains, if this previous rivalry will effect how they will work together under one roof? For more information, visit the CNN.com.