Volkswagen to control Porsche

VOLKSWAGEN have taken a 49.9 per cent stake in Porsche in a 3.9 billion euro deal.

The Wolfsburg-based German car giant confirmed that it would move to secure the controlling stake earlier this year.

A spokesman for Volkswagen said: "For the Volkswagen Group, Porsche ideally complements the brand portfolio.

"The Stuttgart-based car maker will allow Volkswagen to further expand its position in the premium business, which offers particularly strong earnings.

"In turn, as an independent brand under the roof of the Volkswagen Group, Porsche will have the potential for significant additional growth."

With a return on sales of 10.3 percent, Porsche AG is the world's most profitable automobile manufacturer. Volkswagen will in future participate in this business success through its stake.

Volkswagen expect that the planned integration of Porsche in the Volkswagen Group and the associated closer co-operation could lead to profits of more than 700 million euros in the long term.

The realisation of Volkswagen's Bluesport Roadster concept is expected to be the first project to benefit from the new levels of co-operation with Porsche.

Potential changes to the Porsche range could see the loss of both the Cayenne and recently-launched Panamera model lines in order to avoid any conflict between products offered by the two marques.